Ahmed El-Goukh, the showrooms manager at El-Ezz Motors, said that the decision to float the Egyptian pound without opening the door for imports and the shortage of foreign currency required for imports will significantly increase car prices in the Egyptian market.
El-Goukh expected a substantial increase on all car prices, including used cars. Showrooms have decided to stop selling cars until the market’s decision becomes clearer, following the Central Bank of Egypt’s (CBE) decision.
The last seven months were foggy for the automotive sector, and prices were experiencing changes on a daily basis, said El-Goukh.
El-Goukh added that the CBE’s decision to liberate the exchange rate will impact car prices in the coming period; however, the sector is expected to gain some stability as opposed to the confusion that plagues many other sectors and merchants following the flotation.
According to El-Goukh, the sector’s stability depends on opening the door to imports and the availability of foreign currency to increase the supply of cars. This is in addition to eliminating the differences in sale prices, which has frustrated customers and caused a decline in sales over the past months.