Well the age-old adage says “follow the money”, so where better to start than Egypt’s Central Bank? Clicking on the official website’s link in the miniscule description on Wiki, a number of things jumped at me straight away on their ‘About Us’ page:

  • The CBE is an autonomous public legal person, assuming the authorities and powers vested therein by Law No. 88 for 2003, and the Presidential Decree No. 64 for 2004, Issuing the Statute of the Central Bank .

 

Forget the legalese for a second the phrase I want to bring your attention to seems clear enough no matter what other disasters may be contained in Law 88 & Presidential Decree No. 64. The phrase “autonomous public legal person” according to my limited legal knowledge, forged by skirmishes with security, means that it is pretty much run like a corporation in its definition in American Law- which are considered a real person made of flesh and blood with more rights than most Americans- well a better legal team anyways. Well anyone that has read The Corporation should know what I mean. So the Central Bank of Egypt which prints all the money, decides all the monetary & credit & foreign currency exchange policies in our nation is a self-ruling person, allowed the failings of any ‘human’… Interesting…

  • Paid-up Capital = 1000 million Egyptian pounds ( LE).

 

This simply means that the capital or money that runs the bank or the reserves amount to 1Billion EGP. Seems a bit tiny to me in the light of the Billions being exposed since the Jan 25th Revolution, no?

  • The funds of the Central Bank are considered private funds.

 

This simply builds on Point 1 which states that the CBE is a ‘corporation’-like entity by declaring its funds to be private & not public. And scarier still, is the insinuation that the whole thing is run for a group of private persons [or the major stock holders to keep the corporate analogy]…

Then I got to the objectives, which declare on their website their whole raison d’etre, or aims and goals, & each line helped to make me feel even less secure…  This sparsely worded page was turning into a real nightmare with its implications and the knowledge that the Governor & Board of the CBE are appointed and probably receive no supervision or auditing by any other entity… Well I can name at least one person that ruled uncontested for 30 years without being held accountable during the time, and he turned out to be pretty sweet and adorable did he not?

Well to keep it short the CBE dealt with all major ‘money’ issues and founding the principles for day-to-day operations in all money-related sectors from the actual printing of money & its denominations & specifications to how much of it is allowed in the ‘market’ at any one time. This coupled with the responsibility of ‘managing prices’ meant that the CBE owned the tap to Egypt’s market; allowing it to flood & prosper, or to drip, or worse still to hit a patch of market-drought. A most powerful tool to ‘squeeze’ the people and potentially steer them in a sense, if ever someone who was ill-intended or mean ever got to that sacred position of power. And what exactly does the statement mean that all of this is “in agreement with the government”??

The CBE is responsible for the supervision of banking, credit, exchange and ‘money’ institutions- and we all know how that’s faring as more & more is revealed by the day in a race against time to prevent further ‘theft’ of our economy.

The CBE manages the gold & foreign exchange reserves for the State. Ouch…

The CBE supervises the National payments system. Would that be the payrolls for pensions that went up in smoke, or the 5 million government employees which 1.5 million of whom turned out to be Amn Markazi & internal Security Forces?

The CBE is also responsible for “recording and following up Egypt’s external debt both the public debt & private”…

Dunno about you but seems to me that the CBE was run by a few-worded and secretive sociopath that helped crush Egyptians “in agreement with the government” to manage a private wealth as well as the whole money market to the advantage of a small group of people, besides having foreign/external allegiance? Sound about right?

If anyone can answer these questions please help put a mind to ease:

  1. Besides the funds being managed as private funds, WHO do they belong to??
  2. Does Egypt have any gold? And how much belongs to the people?
  3. WHEN was the last time the CBE was audited, if ever & by who?
  4. WHO appoints CBE Governors & Board etc?
  5. What foreign exchange reserves exist for Egypt?
  6. With the appalling state of exposed practices in money & financial markets in Egypt, WHO in the CBE is liable due to its supervisory role?
  7. Billions of Pounds were printed after Jan 25th, what became of them??

Finally, I’d just like to note that every Law & Presidential Decree mentioned on the CBE’s About Us page was during PM Ahmed ‘Nazif’s time in office… Hope that isn’t bad news : (

Links:

Wiki: http://en.wikipedia.org/wiki/Central_Bank_of_Egypt

Official Site About Us page: http://www.cbe.org.eg/about_us.htm

Last declared budget in 2007!!!: http://www.cbe.org.eg/Balance_Sheet_as_at_June_30,_2007_EN.htm

Says total assets are 354,310,404 EGP that’s not even half of 1 Bn, but then again, what do I know? This is pretty confusing to any one & seems to be intended to do just that!

Legalese: http://www.cbe.org.eg/public/Banking_Laws/Law_88,_amendments,_13-7-2005.pdf

Also : “International reserves at the Central Bank of Egypt (CBE) rose by 12.5 percent in July to $ 35.2 billion, the CBE said in its monthly statistical bulletin.

The bulletin, released Thursday 12/08/2010, said the amount covers more than eight months of merchandise imports.

The volume of domestic liquidity has grown by 7.8 percent to reach 64.8 billion pounds, the report noted. The value of commodity exports amounted to $ 17 billion, a decline of 11.9 percent, the report said.” Rest of statement can be found here.

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