Egypt's trade deficit dropped 19.9 percent in October 2016 compared to the same month in 2015, reaching EGP 27.83 billion, the state's statistics body CAPMAS announced on Tuesday. On a month over month basis, the trade deficit increased in October 2016, compared to EGP 22.66 billion registered in September. Exports increased by 21.4 percent year-on-year in October, to reach EGP 16.22 billion, with exports of fertilizers increasing by 196.5 percent and crude oil by 71.1 percent. However, exports of fresh onion and dairy products declined by 48 percent and 30.6 percent respectively compared to October 2015. Imports in October 2016 slowed by 8.4 percent to reach EGP 44.05 billion, compared to EGP 48.11 billion for the same month in 2015. Year-on-year wheat imports decreased by 90.7 percent, including the passenger vehicles, which down by 14.2 percent. Crude oil imports increased by 36.1 percent in October 2016 compared to the same month in 2015. Egypt has undergone a hard-currency crisis in recent months, which resulted in high dollar rates on the black market, and left banks unable to provide companies with the hard currencies for needed for importing. Following the Central Bank's decision to float the pound against the dollar in November, the value of the pound has plummeted, reaching an average exchange rate of EGP 18.5 to the dollar this week, compared to EGP 8.88 pre-float.
