The National Bank of Egypt and Banque Misr have reportedly put up a combined USD 130 mn since Sunday to cover import backlogs. USD 80 mn in letters of credit came from NBE, the bank’s chairman Hisham Okasha tells Youm7. The imports consisted of production inputs, pharmaceuticals, petrochemicals, and a number of basic goods, he tells Ahram Gate. Banque Misr has cleared USD 50 mn since Sunday, according to the bank’s chief Mohamed El Attreby. As we noted on Monday, Citibank analysts estimate that backlog at USD 9-11 bn.

“Banks are not covering demand fast enough,” said Mohamed Rostom, secretary general of the importers division of the Federation of Egyptian Chambers of Commerce. He tells Al Mal that he and other importers have been waiting for days for banks to come clear their imports. (Yes. We pulled back from the brink of economic disaster four business days ago, and — gasp — not everyone has all the USD he / she requires just yet. Please visit your local pharmacy, acquire a pacifier, and wait your bloody turn.)

Helping build the liquidity that will make Mr. Rostom happy, NBE vice-president Yahia Aboul Fotouh claims: remittances were up fourfold since last Thursday, which he attributed to the appeal of the new 20% interest CDs offered by the public banks, Al Mal reports.

Auto industry still tapping parallel market: Automotive distributors and importers tell the newspaper that they are continuing to be passed over for LCs and had to continue to resort to the parallel market which offered greenbacks for EGP 18.75. And as some banks, including Crédit Agricole have begun exchanging greenbacks for over EGP 18.00 on Tuesday, Rostom and other importers are once again crying foul and calling the float a failure. “It’s not too late to reverse the policy,” he suggested. The CBE puts the average exchange rate at EGP 17.42 for the USD 1 on Tuesday, so we can’t really sympathize. (And, again, please see our note about the pacifier, above.)

And speaking of the parallel market: The Egyptian Exchange Company has sold USD 1 mn to the National Bank of Egypt at 16.25 per greenback, Al Masry Al Youm reported. The move is “unprecedented,” the paper notes, explaining that the CBE gave its blessing to the transaction.

Against that backdrop, the Egyptian Automobile Manufacturer’s Association (EAMA) will meet today, Al Mal reports, to discuss customs duties on cars, which as we noted on Sunday, have increased to 66% and which are now filtering down into sticker prices in showrooms. EAMA members are predicting a continuing slump in car sales as a result. (Auto industry reps are also due to appear before the House Industry Committee to discuss the automotive directive next week, Al Borsa confirms.)

Spiking customs duties was one of five major issues affecting business identified by the Federation of Egyptian Industries (FEI) at its meeting on the float yesterday. Other concerns include: projected losses for the pharma industry, pricing of gas for industry, and a lack of clarity on how to revalue USD debt held in corporate books as well as the value of government contracts, FEI sources tell Al Mal.