Is Egypt and Turkey heading to trade in local currencies?

Egyptian Foreign Minister Sameh Shoukry is heading to the Turkish capital, Ankara, today, Thursday, at the invitation of his Turkish counterpart, Mevlut Cavusoglu.

The Foreign Ministry spokesperson stated that the visit aims to:

• Continue discussions related to the path of normalization of relations between Egypt and Turkey.

• Enhancing bilateral relations between the two countries in various fields.

• Completing the talks that took place between the two sides during the visit of the Turkish Foreign Minister to Cairo last March.

• Consultation on a number of regional and international issues of common interest.

Foreign Minister Sameh Shoukry said that the restoration of relations between Cairo and Ankara is in the interest of the region and its people, reduces tension and creates more calm.

High-ranking sources in the Ministry of Industry and Foreign Trade said that dealing in local currencies between Egypt and Turkey, in the Turkish lira and the Egyptian pound, will require at least two years of discussions and negotiations.

  Trade exchange

The rate of trade exchange between Egypt and Turkey last year amounted to about $7.7 billion, according to official data, and these amounts can be saved if dealing in local currencies.

Relationships improve

   Trade exchange with Turkey witnessed a strong increase during the last period, with the improvement of relations between the two countries, but there are no consultations for exchange in local currencies.

Commercial dealings

   Commercial dealings between the Egyptian and Turkish business sectors in the currencies of the two countries requires negotiations at the level of the diplomatic sector, then the approval of the Central Bank of Egypt and the Central Bank of Turkey and the issuance of the necessary licenses and guarantees.

The sources revealed that if the policy makers in the two countries realize the importance of dealing in local currencies between Egypt and Turkey in the Turkish lira and the Egyptian pound, they will strongly support this project, and perhaps if the work is intensified, it will end within a year.

Turkish investments in Egypt

Egyptian Foreign Minister Sameh Shoukry is visiting Ankara today, Thursday, to meet his Turkish counterpart, Mevlut Cavusoglu, as part of plans to fully restore relations between the two countries.

In conjunction with the period that witnessed the improvement of relations between Egypt and Turkey, during the past months, the value of Turkish investments in Egypt increased by 30.3%, to reach $179.9 million during the fiscal year 2021/2022, compared to $138.1 million during the fiscal year 2020/2021.

According to the Foreign Trade Bulletin issued by the Central Agency for Public Mobilization and Statistics, the value of trade exchange between Egypt and Turkey increased to reach $7.7 billion in 2022, also coinciding with the period that witnessed the improvement of relations between Egypt and Turkey, during the past months, compared to $6.7 billion in a year. 2021, an increase of 14%.

Turkish armament companies

In a related context, the Turkish newspaper Dunya, which specializes in economic affairs, revealed that a leading Turkish company in the reinforcing steel sector will enter the Egyptian market during the coming period, especially with the tendency of major companies in Turkey to enter with large investments in Egypt, at a time when the relationship between The two countries are a great development.

Steel sector

The newspaper indicated that the company will sign an agreement next week to start production in Egypt with a local partner, and indicated that a delegation from the Turkish Rebar Union will visit Egypt during the coming period.

The head of the Turkish Rebar Union, Gokhan Turhan, said that choosing Egypt as the first country to be visited by a trade delegation from the union will be an important step in accelerating the process of normalization between the two countries and increasing bilateral relations.