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Egypt: Parliament Confirms Reappointment of Central Bank Governor

Egypt: Parliament Confirms Reappointment of Central Bank Governor

Thursday, 28 November, 2019 - 12:15
Egypt's Central Bank Governor Tarek Amer speaks at a news conference in Cairo, Egypt, November 3, 2016. REUTERS/Mohamed Abd El Ghany

Egypt's parliament approved the appointment of central bank governor Tarek Amer to a second four-year term on Thursday, state media reported.

The parliament, in a recess, held an emergency session to vote on the decision by President Abdel Fattah al-Sisi to reappoint Amer, whose first term ended on Wednesday. The approval was required under the constitution.

Amer was first appointed in 2015 when Egypt was in a currency crisis. A three-year IMF economic reform program included a sharp devaluation of the pound currency, the introduction of a value-added tax and the elimination of subsidies on most fuel prices.

"Clearly the heavy lifting is done but then we need to have someone to protect these gains and build on them," said Mohamed Abu Basha, head of macroeconomic analysis at EFG Hermes.

Steps still needed include a full transition to inflation-targeting and further development of the banking sector, especially digitalization and pushing banks to lend to wider sectors, Abu Basha said.

Allen Sandeep, head of research at Naeem Brokerage, said: "The challenge now will be to walk a balanced path between easing monetary policy and keeping inflation in check."

Governors are allowed only two terms under the constitution.

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