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Friday, 4 November 2016

What’s the business community saying?

CIB boss Hisham Ezz Al Arab: “It’s a historic move for Egypt. It proves the government is serious about the reform. … Now, for the first time in 60 years, the exchange rate will become a tool rather than an objective. The price equilibrium will determine how much you want to reduce your imports, how much you can increase your exports, consumption, everything." (Reuters and Bloomberg)

Nevine Loutfy, CEO at ADIB Egypt said the float would “drive growth and put the reform process on track,” adding that the bank would extend its operating hours in line with the Central Bank of Egypt’s directive. (Emailed statement)

Ali Tawfiq, head of the Automotive Industry Feeder Association said the move will be net positive for the feeder industry: The more expensive USD will prompt demand for local components, and a functioning FX market will allow component manufacturers to import production inputs. (Al Mal)

Mohamed Mohieldin, vice-chair of the Egyptian Private Equity Association praised the float, saying it would “eliminate the black market” and “confirms Egypt is on the right track.” The timing meshes nicely with the package of tax breaks and investment incentives announced this week by the Supreme Investment Council. (Al Borsa)

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