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BILATERAL MEETING BETWEEN EGYPT AND LEBANON within the Partnership Project between the VdU and Businesswomen Associations in the MENA Region

23 September 2016

Sukhna recommendations of the Conference: -
It has discussed possible means to overcome the problem of the exchange rate through two axes: -
• First: - For companies
• Axis II: - for the State
Among the proposals, which were discussed and that companies could take to overcome the problem of the exchange rate, including:
a. Try to replace debt in other currencies, which the companies or Egyptian Pounds to stabilizing the exchange rate for such debt
b. Reinvest surpluses among the companies in investment projects generate profits and increase their capital value
For example: - good investment projects Executions
Or direct investment by opening new projects rather than hold on to
Those surpluses banks where the purchasing value of money is decreasing inflation increase
- When new contracts with other parties in foreign currencies should be put items that will reduce the volatility of exchange rates and a review of decades old items to find legal solutions to existing problems
- Find some accounting treatments with a specialist company to put items allows the company to record exchange differences lead to a lack of profit is not real is accounted attic tax
As for Axis II: - the proposals recommended by the Congress to get out of this crisis for the State
It is summarized in the following: -
1. try to eliminate the phenomenon of smuggling, which help to create a black market for currency
2. prevent the import of luxury goods and not just to increase taxes by up is reduced demand for foreign currencies
3. attempt to find a mechanism to trade goods between us and the countries that export them and import them at the same time to ensure that the source for his dues, but in local currency and ensure that the importer to pay what it local currency
And it is the guarantor of the state party and the organizer of this mechanism with the other country in order to ensure the work of clearing between the importer and other Almsderbath in a currency other State
4. shifting from consumer to producer, as a first stage and then to producer and exporter as a second stage in the long term
5. Diversity in reserve and not rely on only in the sense that the dollar is also rely on gold as a reserve last, as well as add other currencies and this solution also being planned to be implemented in the long term

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