Egypt’s Central Bank Says New Import Rules Will Be Applied in March

People walk past the Egyptian Central Bank in downtown Cairo on November 3, 2016. (Getty Images)
People walk past the Egyptian Central Bank in downtown Cairo on November 3, 2016. (Getty Images)
TT
20

Egypt’s Central Bank Says New Import Rules Will Be Applied in March

People walk past the Egyptian Central Bank in downtown Cairo on November 3, 2016. (Getty Images)
People walk past the Egyptian Central Bank in downtown Cairo on November 3, 2016. (Getty Images)

Egypt's central bank governor has said new rules requiring importers to use letters of credit will be implemented starting in March despite complaints from business groups and traders that the measure could inflate their costs.

Central Bank Governor Tarek Amer urged businessmen to "reconcile their situations and not waste time in controversies that have no relation to the stability of Egypt's foreign trade and its sound performance," according to a statement reported by state news agency MENA.

The statement followed instructions from the central bank that were circulated by traders and reported by local media instructing banks to only accept letters of credit from importers.

Importers are currently able to use a cash-against-documents system that traders say requires less payment in advance.

A group of trade and business associations had complained in a letter to the prime minister on Monday that the new rules could exacerbate supply chain problems, damage competitiveness and delay import shipments.

Egypt has struggled to contain a rising import bill and a current account deficit that widened to $18.4 billion in the 2020/21 financial year from $11.4 billion the previous year.



Gold Extends Gains as Trump Tariffs Fuel Safe Haven Flows

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
TT
20

Gold Extends Gains as Trump Tariffs Fuel Safe Haven Flows

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo

Gold prices rose for a second straight session on Tuesday, but traded below the recent all-time highs, as uncertainty around US President Donald Trump's tariff plans continued to fuel economic growth concerns and safe haven flows into bullion.

Spot gold gained 0.6% at $2,913.79 an ounce as of 0714 GMT. It hit a record high of $2,942.70 last week.

US gold futures added 0.9% to $2,925.50.

"Trump's disruptive modus operandi, aggressive rhetoric and tariffs - whether actual or threatened - could unravel global trade and intricate supply chains," said Nikos Tzabouras, senior financial writer at trading platform Tradu, Reuters reported.

"With uncertainty surrounding the global economy and the broader geopolitical landscape in the Trump 2.0 era, gold is set to remain a natural beneficiary of risk-off flows and central bank buying."

Since taking office last month, Trump has swiftly redrawn the global trade battlefield with a series of tariffs, while plans are already in motion for sweeping reciprocal tariffs, aimed squarely at any nation that taxes US products.

"Gold continues to benefit from the uncertainty surrounding the US. government's tariff policy. Central bank buying should also continue to provide support, even if there is no new data on this," Commerzbank analysts said in a note.

The market's focus has now shifted to the US Federal Reserve's January meeting minutes due on Wednesday for clues into the central bank's interest rate trajectory.

"Price gains are also supported by growing expectations that the Fed will cut rates in 2025 - a sentiment that gained further traction among traders after last week's disappointing US retail sales figures," Ricardo Evangelista, senior analyst at brokerage firm ActivTrades, said.

Bullion benefits from geopolitical and economic uncertainties, as well as rising price pressures, but higher interest rates diminish the asset's allure.

Spot silver fell 0.9% to $32.50 an ounce. Platinum jumped 0.9% to $985.20 and palladium climbed 1.6% to $978.00.