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Egypt Government Moves to Control Currency Exchange Rate

Egyptian Prime Minister Mostafa Madbouly during a press conference at Alexandria port. (Egyptian government)
Egyptian Prime Minister Mostafa Madbouly during a press conference at Alexandria port. (Egyptian government)
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Egypt Government Moves to Control Currency Exchange Rate

Egyptian Prime Minister Mostafa Madbouly during a press conference at Alexandria port. (Egyptian government)
Egyptian Prime Minister Mostafa Madbouly during a press conference at Alexandria port. (Egyptian government)

The Egyptian government pledged to “control the market,” stressing that the US dollar crisis is on its way to being resolved. 

It has also sought to crack down on currency dealers in the “black market.” 

The value of the Egyptian pound declined against the US dollar following the Central Bank’s decision in October to move to a flexible exchange rate, describing it as one of the conditions for obtaining an International Monetary Fund (IMF) loan.  

Cairo received the first tranche of the IMF loan in December, which led to a wave of “high prices.”  

Government spokesman Nader Saad confirmed in televised statements that the US dollar crisis is on its way to being solved, adding that there are commodities worth $8.5 billion in the ports and that the coming period would witness the release of items worth $3.4 billion. 

“The past period witnessed a significant breakthrough in the release of goods from the ports, which had a positive impact and increased supply in the markets,” he explained. 

Prime Minister Mostafa Madbouly vowed in a press statement on Saturday to release the goods in the ports, according to a plan that includes paying suppliers’ arrears gradually.  

The recent period witnessed a discrepancy in the exchange rate of the dollar, as its value in the official market amounted to EGP24.6, while its value in the unofficial market rose to about EGP38 before it fell to about EGP28 in recent days, with the government taking measures regarding the “black market.”  

The Ministry of Interior arrested two persons who tried to smuggle foreign currency through Cairo Airport, in violation of Egyptian monetary law, according to an official statement.  

The security services also arrested three persons for their illegal trade in foreign exchange via Facebook. 

The government’s media center highlighted in a press statement the state’s effort over the past eight years in establishing a comprehensive social protection system, asserting that it remains a top priority.  

It noted the social safety net program, Takaful and Karama, for cash transfers, saying it is among the most significant investments in human capital development. It also said the Decent Life initiative contributed to improving the living conditions of rural communities.  

The media center indicated that total support, grants, and social benefits increased by 50.2 percent after it reached EGP343.4 billion in 2021/2022, compared to EGP228.6 billion in 2013/2014.  

The value of cash support increased to EGP20 billion after implementing the Takaful and Karama programs, compared to EGP5 billion in 2013/2014.  

Food subsidies increased to EGP96.8 billion in 2021/2022, compared to EGP35.5 billion in 2013/2014, and minimum wages rose to EGP3,000 pounds in 2022 from EGP1,200 in 2014. 

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Arab World

Yemen Crisis Meeting Seeks to Curb Impact of Houthi Terror Listing

Yemen’s Presidential Leadership Council (PLC) chief, Rashad al-Alimi, held a virtual meeting with the Economic and Humanitarian Crisis Committee (Saba News Agency)
Yemen’s Presidential Leadership Council (PLC) chief, Rashad al-Alimi, held a virtual meeting with the Economic and Humanitarian Crisis Committee (Saba News Agency)
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Yemen Crisis Meeting Seeks to Curb Impact of Houthi Terror Listing

Yemen’s Presidential Leadership Council (PLC) chief, Rashad al-Alimi, held a virtual meeting with the Economic and Humanitarian Crisis Committee (Saba News Agency)
Yemen’s Presidential Leadership Council (PLC) chief, Rashad al-Alimi, held a virtual meeting with the Economic and Humanitarian Crisis Committee (Saba News Agency)

Amid escalating military operations by the Iran-aligned Houthis in the Marib, Al-Jawf, and Taiz battlefronts, Yemen’s Presidential Leadership Council (PLC) chief, Rashad al-Alimi, held a virtual meeting with the Economic and Humanitarian Crisis Committee.

The meeting aimed to discuss measures aimed at mitigating humanitarian repercussions following Washington’s designation of the group as a “foreign terrorist organization.”

The US State Department confirmed on Tuesday that the executive order reinstating the Houthis’ terrorist designation—originally issued by former President Donald Trump upon his return to the White House—had come into effect.

Shortly after, the US Treasury imposed financial sanctions on seven senior Houthi figures, including the group’s spokesperson Mohammed Abdul Salam, its ruling council head Mehdi al-Mashat, and Mohammed Ali al-Houthi, a cousin of the group’s leader.

State media reported that Alimi held a meeting with the Economic and Humanitarian Crisis Management Committee, led by Prime Minister Ahmed Awad bin Mubarak, to discuss economic, monetary, and banking developments, as well as measures to address the US executive order designating the Houthis as a terrorist group.

According to official sources, the meeting focused on government measures to manage the designation, including exemptions and licenses issued to ensure the continued flow of humanitarian aid and mitigate potential humanitarian fallout from the decision, which took effect on Tuesday.

The meeting reaffirmed the Yemeni government’s commitment to working closely with the international community to minimize the impact of the US terrorist designation on citizens, national institutions, and key sectors, particularly the banking industry.

According to the state-run Saba news agency, Alimi was briefed by bin Mubarak, Central Bank Governor Ahmed Ghalib al-Maabqi, Foreign Minister Shaea al-Zindani, and Economic Team Head Hossam al-Sharjabi on the latest economic and living conditions.

They also outlined government efforts to meet essential obligations, especially during the holy month of Ramadan.

The briefing, Saba reported, covered key financial and monetary indicators, the efficiency of state institutions in securing public revenue, and measures to sustain essential services across provinces.

Addressing fresh sanctions on the Houthis, US State Department spokesperson Tammy Bruce said in a statement that Washington had imposed sanctions on seven senior members of the group for their involvement in smuggling weapons into Houthi-controlled areas and negotiating arms supply deals.

One of the sanctioned individuals and his company were also accused of recruiting Yemeni civilians to fight for Russia in Ukraine, generating additional resources to fund the Houthis’ military operations, Bruce added.

For its part, the UN confirmed that its special envoy to Yemen, Hans Grundberg, remains committed to continuing his mediation efforts under the mandate of the UN Security Council, working towards a comprehensive and peaceful resolution to the decade-long conflict in the country.

In a statement to Asharq Al-Awsat, Grundberg’s spokeswoman Ismini Palla said it was too early to assess the impact of the US decision to impose sanctions on Houthi leaders.

The envoy remains dedicated to his mediation efforts in line with the Security Council's mandate, pushing the dialogue towards a peaceful and inclusive resolution of the conflict in Yemen, she added.

Also speaking to Asharq Al-Awsat, US Ambassador to Yemen, Steven Fagin, reaffirmed that under Trump's leadership, the US remains committed to holding the Houthis accountable for their terrorist attacks and working with the international community to weaken their capabilities.