Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Gold Division Proposes to Use Central Bank's Gold Reserves

Gold Prices, gold

Wed 23 Nov 2022 | 09:03 PM
Walid Farouk

Mohsen Fawzy, the deputy of the Gold and Precious Metals Division at the Federation of Industries, suggested using Egypt's gold reserves to finance manufacturers at an interest rate of up to 4%, over short periods, as Saudi Arabia and the UAE did.

Fawzy added that this proposal will lead to maximizing the reserves of the Central Bank by about 40% within 10 years and will also enable companies to increase the volume of their production.

He pointed to the possibility of tightening guarantees by the Central Bank to ensure the commitment of manufacturers, Through the fixed assets of the companies either the value of the company’s land or modern equipment and machinery, in addition to the company’s balance of gold.

Fawzy explained that the idea was applied in some Arab and foreign countries and succeeded in a great way, and contributed to the expansion of companies in the local and foreign markets.

He added that the matter also contributes to benefiting from the state’s gold reserves instead of having a non-returnable asset.

Contributed by Israa Farhan @⁨Walid Farouk⁩