CAIRO - 9 October 2023: The Central Bank of Egypt (CBE) is exploring ways of allowing trade with Turkey in local currencies, according to a statement by the head of the Commercial Representation Authority at Egypt's Ministry of Trade and Industry, Yahya El-Wathiq Billah.
They initially agreed to partially trade in local currencies, which would account for approximately 25 percent to 30 percent of the total bilateral trade volume between Egypt and Turkey, according to El-Wathiq Billah.
He added that the primary objective behind this step is to reduce the demand for the US dollar, as both countries are facing a shortage of foreign currencies.
Egypt's net international reserves surged to $34.97 billion in September 2023, marking a notable upswing of $1 billion compared to the previous month, according to a previous statement by the CBE.
Egypt is looking forward to increasing trade volume with Turkey to $15 billion within the next five years, Minister of Trade and Industry, Ahmed Samir, stated in August. He added that the trade between Egypt and Turkey increased by 14 percent to reach $7.7 billion in 2022, compared to $6.7 billion in 2021.
Egypt's exports to Turkey witnessed significant growth of 32.3 percent to reach $4 billion in 2022 compared to $3 billion in 2021, as reported by the Central Agency for Public Mobilization and Statistics (CAPMAS).
Furthermore, Turkish investments in Egypt increased by 30.3 percent during FY2021/2022, reaching to $179.9 million, compared to $138.1 million in the previous fiscal year.
Earlier in July 2023, Egyptian-Turkish diplomatic relations were restored for the first time in 10 years, after disturbance due to political reasons.
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