The Clap The Ministry of Finance raised the customs dollar exchange rate to reach EGP 17 instead of EGP 16, which had been set on March 22, 2022. The new rate will take effect starting May 2022.
Claps Class Customs dollar is an economic term that refers to US dollar exchange rate that is used in importing goods from abroad.
Backstory Over the past years, the Egyptian government stopped specifying the exchange rate for the customs dollar, and has linked its price to its rate in banks. A little over a month ago, the government fixed the exchange rate at EGP 16.
Why this matters The decision aims to control the prices of imported goods from abroad, & not to expose imports to inflationary pressure, especially after the increase in the price of the dollar against the pound in March 2022.
The Ministry of Finance will approve the customs dollar exchange rate on a monthly basis.