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Ahram Online: Egypt's decision to adjust customs on luxury goods to benefit economy

The decision will help improve the efficiency of resource allocation, including the foreign direct investment.
10.12.18 | Interesting article at Ahram Online

The Egyptian Ministry of Finance’s decision to adjust the customs dollar exchange rate for non-essential goods, tying it to the Central Bank of Egypt (CBE)’s dollar exchange rate will benefit the Egyptian economy as a whole, said the head of the International Monetary Fund (IMF)’s mission to Egypt Subir Lall.

Lall told MENA on Friday that the decision will help improve the efficiency of resource allocation, including the foreign direct investment.

The decision’s impact on inflation rates will be once and will be limited, he said, noting that the decision marks an important progress.

The previous customs practices, such as conducting transactions at fewer exchange rates included an unnecessary implicit subsidy, he clarified.