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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)
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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.

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Three Saudi-Yemeni Companies Established in Energy, Telecom to Support Yemen's Reconstruction

The Saudi-Yemeni Business Council holds meeting in Makkah, announces strategic initiatives (Asharq Al-Awsat)
The Saudi-Yemeni Business Council holds meeting in Makkah, announces strategic initiatives (Asharq Al-Awsat)
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Three Saudi-Yemeni Companies Established in Energy, Telecom to Support Yemen's Reconstruction

The Saudi-Yemeni Business Council holds meeting in Makkah, announces strategic initiatives (Asharq Al-Awsat)
The Saudi-Yemeni Business Council holds meeting in Makkah, announces strategic initiatives (Asharq Al-Awsat)

The Saudi-Yemeni Business Council, part of the Federation of Saudi Chambers, announced six initiatives to boost trade and support Yemen’s economic development at a meeting in Makkah, Saudi Arabia.
Over 300 Saudi and Yemeni investors attended, agreeing to establish three companies to help rebuild Yemen and improve its infrastructure.
The initiatives include upgrading border crossings to improve logistics and increase trade, currently valued at 6.3 billion riyals ($1.6 billion). Yemen’s exports to Saudi Arabia, worth only 655 million riyals ($174.6 million), highlight untapped potential in mining, agriculture, livestock, and fisheries.
Key recommendations to enhance trade and support Yemen’s economic recovery include setting up quarantine facilities for Yemeni livestock and agricultural products to increase exports, as well as building smart food cities near border areas to improve food security and sustainable cooperation.
The Council urged action to address banking challenges faced by traders, suggesting reforms in Yemen’s financial sector and stronger ties with Saudi banks. It also proposed creating a club for Yemeni investors in Saudi Arabia to encourage joint projects and partnerships.
Three new Saudi-Yemeni companies will be established. One will invest $100 million in solar energy to provide sustainable electricity in Yemen. Another will focus on boosting telecommunications via Starlink satellite services. The third will organize events to promote Saudi products and support Yemen’s reconstruction.
Speaking to Asharq Al-Awsat, Council President Dr. Abdullah bin Mahfouz emphasized the private sector’s critical role in stabilizing Yemen’s economy and society through investments that support development, create jobs, improve infrastructure, and promote small and medium-sized enterprises (SMEs).
He stressed the importance of empowering Yemeni entrepreneurs and securing funding for reconstruction projects, encouraging public-private partnerships to execute large-scale initiatives under the Build-Operate-Transfer (BOT) model.
The Makkah meeting ended with agreements between Saudi and Yemeni companies to develop key sectors such as energy, agriculture, and infrastructure.
Streamlined customs, improved logistics, and upgraded Yemeni ports and airports were also highlighted as priorities to facilitate trade.
Yemeni delegation leader Abdulmajid al-Saadi, praised Saudi Arabia’s new investment law, noting Yemeni investments in the Kingdom have reached 18 billion riyals ($4.8 billion), ranking third among foreign investors.