Egyptians abroad bringing in quantities of gold into Egypt contributes to an increase in the local market supply of gold.
Proposal to allow limited gold imports duty-free - File Photo
Egyptian Minister of Supply and Internal Trade, Dr. Ali Moselhi, has proposed a measure to the Cabinet to allow Egyptians returning from abroad to bring in limited amounts of gold without paying customs duties.
During a press conference, Dr. Moselhi explained that Egyptians abroad bringing in quantities of gold into Egypt contributes to an increase in the local market supply of gold, particularly because market forces are stronger than any intervention that is not through regulated mechanisms.
Minister Moselhi also announced an upcoming meeting with the Chamber of Commerce and the Gold Division to draft the proposal for presentation to the Cabinet, citing an increase in demand, particularly for gold bars.
He further noted that the gold market is linked to three factors: "the global gold price, the dollar price, and the volume of supply and demand," clarifying that the significant increase in gold prices is due to the surge in demand with limited gold supply.
This proposal is a positive development in the Egyptian gold market, as it could lead to a boost in demand, which would encourage production and investment in the sector.
The gold industry in Egypt is a significant contributor to the country's economy, and this measure could provide a much-needed stimulus to the sector, which has been affected by the pandemic's economic fallout.
