Conferences and Workshops

The Impact of Exchange Rate Depreciation on Egypt’s Trade Balance

Date : 12/14/2015

Speakers : Multiple Speakers

Egypt’s international reserves dropped to critical levels recently and the Egyptian pound is under mounting pressure. Several factors are responsible, including decreased exports over the past two years by 19 percent; a decline in the ratio of merchandise exports to imports from 49 percent in 2010 to 36 percent in 2015; and a deteriorating trade deficit from US$25 billion to US$39 billion over the same period. This was compounded by a decrease in tourism receipts; a slowdown in the world economic activity; a serious decline in official transfers in 2014/2015, culminating in a considerable increase in the current account deficit from US$3 billion in 2013/2014 to US$ 12 billion in 2014/2015. Over and above, foreign capital flows have been highly volatile.

 Against this backrop, this workshop addressed the following questions:

. What is the nature and size of the exchange rate problem?

. What is the impact of exchange rate depreciation on Egypt’s trade balance?

. What are the policy options to address the trade balance deficit and augment foreign currency receipts?

 

Workshop Chair: Omar Mohanna, ECES, Chairman

Presentation: Omneia Helmy, ECES

Discussion Leader: Ahmed Galal, ERF Managing Director