Now, under the new cabinet, new responsibilities have been given to the Minister of the Economy Youssef Boutros Ghali, who during past months had kept a noticeably low profile. Ghali's expanded portfolio includes external trade and the reduction of the deficit in the balance of payments. It is expected that he and the CBE will work closely. CBE Governor Ismail Hassan announced this week that he and Ghali are on good terms. However, the issue of the CBE's independence remains a pertinent question.
Some experts argue that current laws governing the banking sector make for a strong central bank.
Legal consultant Mahmoud Fahmi, who is also CBE board member, said that Law 163 for the year 1957 and Law 120 for the year 1975 and their amendments provide the central bank with sufficient guarantees. By law it is not possible that the CBE governor can be removed from his post. The law also makes the bank accountable by requesting that it submit an annual report to parliament. The Central Bank coordinates with the capital market and with the ministries in carrying out national economic policy, and does not act in isolation. In the corning phase, the four major public sector banks are expected to grapple with the issue of privatization, which remains politically sensitive.