Cairo — Mubasher: Elsewedy Electric on Thursday said that the recent hike in the customs dollar exchange rate introduced by the Central Bank of Egypt (CBE) will not impact its business results over the coming period.
Most of raw material imports are not subject to the decision, the cable maker said in a filing to the Egyptian Stock Exchange (EGX).
The Arab world's largest listed cable company reported a 20.9% year-on-year decline in its consolidated profits during the first half of 2018, recording a net profit of EGP 2.41 billion from EGP 3.05 billion.
In the same vein, MM Group For Industry And International Trade (MTI) said that the rise in the customs exchange rate will not push up the prices of smartphones and household appliances.
Smartphones are already customs-free, along with European household appliances manufactured by Bosch Group and distributed in Egypt by MTI according to the partnership agreement between Egypt and the European Union (EU), the consumer electronics distributor said in a filing to the Egyptian bourse.
The finance ministry previously announced that the customs dollar exchange rate would be kept at EGP 16 for essential goods as of 1 December 2018, while the rate for the non-essentials goods would be tied to the official one set by the CBE.
The Egyptian Automobile Manufacturers Association’s former chairman told Mubasher that the customs exchange rate would skyrocket the prices of European and non-European cars.
