Many of those involved in monetary policy and the exchange market believe that Tarek Amer, the new governor of the Central Bank of Egypt (CBE) who is to officially take office on 27 November, will amend the management style of these two files. They say he will adjust a number of decisions and actions taken by Hisham Ramez, the former CBE governor.
Ramez has taken several decisions and actions concerning the management of the foreign exchange market, but met with strong opposition by businessmen and importers.
Ramez’s decisions, including those relating to capping dollar deposits at banks, have not been welcomed by several economical organisations and bodies, as well as the Federation of Egyptian Chambers of Commerce.
According to Haitham Abdel Fattah, Director General of the Treasury of the Industrial Development and Workers Bank of Egypt, Amer is expected to pursue a new highly flexible monetary policy to achieve CBE’s main goal, fighting against inflation while serving the economic growth.
Abdel Fattah believes that Amer will have his own style and way in dealing with the exchange market crisis, and the price of the pound against the dollar, noting that he will have a different point of view in some of the actions or decisions taken by Ramez.
“Ramez’s decision of capping dollar deposits at banks may continue under Ramez’s management,” Abdel Fattah said. “It is highly likely he will revisit this decision later on.”
Tamer Youssef, Head of the Treasury and Capital Markets sector at a foreign bank, said that managing the exchange market and monetary policy are the prerogatives of CBE, which exploits its available tools to fit to the monetary policy that is compatible with the state’s objectives, noting that those objectives do not change, unlike the method and tools used to reach them.
Youssef explained that Amer is expected to use different tools to reach the same objectives of monetary policy than those utilised by Ramez.