GALLIARD
ABECOR
COUNTRY REPORT
ABECOR is an association of European banks seeking to improve the services that
each individual member is able to offer to its customers by developing banking and
financial objectives on the basis of mutual co-operation.
President: Mr Hosni Mubarak
а й Area: 1,001,449 sq km
Population: 53.5 million (mid-l§988 estimate)
I 1 f Gross Domestic Product (GDP): US$ 26.4 billion (1§988 estimate)
I Й /у GDP per capita: US$ 493 (1988 estimate)
Major Exports: Hydrocarbons 60.1%, Cotton 1»8.2% (1§988 estimate)
Import Cover: 1.9 months (1§988 estimate)
Foreign Exchange Reserves: US$ 1,263 million (end-l§988)
Exchange Rate: US$1 - Egyptian pounds (£E) 2.59
(Commercial rate, 5 June 1§989)
РхсЬаП0е Pttte SystemA frequently modified multiple exchange rate-system operates. The existing system,
insituted in May 1§987 consists of a fixed rate set by the Central Bank, a fixed “special”
rate and a free banks’ rate which is set daily by a committee composed of
representatives from banks dealing in foreign and local currencies. The fixed rate
applies to almost all transactions conducted through the Central Bank, including Suez
Canal dues, payments for imports of some essential foodstuffs and most public sector
transactions. The “special” rate applies to transactions under bilateral payments
agreements. The free banks’ rate applies to all other transactions.
Payments
There have been some delays in payments for exports to Egypt and the position should
be kept under review.
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GALLIARD
Selected Economic Indicators: domestic
1984
1985
1986
1987
1988
Population Growth (%)
2.8
2.8
2.3
2.3
2.7
Real GDP Growth (%)
5.7
4.5
-1.0
3.0
2.7
Consumer Prices (% change)
171
13.3
22.5
19.8
25.8
EXTERNAL
1984
1985
1986
1987
1988
Trade Balance (US$mn)
-5,386
-4,502
-4,011
-4,328
-4,970
Exports
3,846
3,836
2,632
3,115
3,050
Imports
9,250
8,338
6,643
7,443
8,020
Current Account Balance (USSmn)
-2,081
-2,245
-1,870
-318
-889
Debt Outstanding (USSmn)
30,513
34,798
37861
40,264 40,369
£E/US$ (commercial bank market rate)
1.25
1.53
1.88
2.14
2.32
(Official Rate)
0.70
0.70
0.70
0.70
0.70
The 1986 recession, attributable mainly to the sharp decline in the price of oil, was
reversed in the 1987/88 business year, which runs from July 1. There are, however,
diverging views on subsequent economic developments. The 5.3% increase in real
GDP calculated by the authorities for 1987/88 measures the rise from the 1986/87
recession year, but the underlying rate of growth is estimated at around 2.7%,
equivalent to the annual expansion in the numbers of the population.
The prospects for 1988/89 are moderate, with the impetus from the agreements
reached with the International Monetary Fund (IMF), which were followed by the
first rescheduling of the country’s debts in May 19817 insufficient to ensure sustained
growth. The reform measures so far introduced, particularly the introduction of a
uniform exchange rate for all commercial banks, are unlikely to be followed too
quickly by additional measures. Attempts to reach agreement with the IMF on the
pace of reforms and then to obtain a new rescheduling of foreign debt are being
accompanied by continued efforts to rally bilateral support to help finance the
reform programme.
Galliard is a true example of classic old face design with a particularly
attractive calligraphic italic. The roman and italic used in conjunction as
above make an otherwise fairly mundane report reasonably interesting.
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