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FEI chief urges government to limit use of cash

Federation of Egyptian Industries (FEI) has said that increase of cash on markets would lead to its usage in terrorist purposes adding that government is mulling decision to a timeline on limiting use of cash.
 
During a press conference on Wednesday, FEI Chief Mohamed al-Seweidy said that lack of control on financial transactions could expose Egypt to security and economic terrorism, adding that all terrorism funding comes through cash.
 
Allowing the cash flow without limits makes people able to evade taxes, he said stressing the federation’s support toward the recent Central Bank of Egypt measures taken to control the US dollar price in the black market
 
He added that having two prices for the dollar on the market prevents investors from pumping more money, indicating that some companies suffer problems due to the unstable prices of currency as well as not not admitting the difference in currency price when it comes to the companies budgets, which leads to additional taxes imposed on them.
 
Seweidy, who expected the dollar price to settle at LE8, urged that imported and local products prices not to be affected by the dollar price increase, as traders and manufacturers set the product price at the dollar price in black market, as banks did not provide needs of companies but the basic goods only.
 
Only the state budget, according to Seweidy, will be affected by the increase in dollar increase. The government has the chance to limit the increase through the savings achieved by decline in oil prices.
 
FEI proposed main demands to the government to handle before March economic summit including amendments of legislations on criminal procedures of the penal code and limiting use of cash in economy, Seweidy said.
 
 
Edited translation from Al-Masry Al-Youm

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