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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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Cairo May Request Extradition of Qaradawi’s Son from Abu Dhabi

Umayyad Square in Damascus (Reuters)
Umayyad Square in Damascus (Reuters)
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Cairo May Request Extradition of Qaradawi’s Son from Abu Dhabi

Umayyad Square in Damascus (Reuters)
Umayyad Square in Damascus (Reuters)

As Lebanese authorities proceed with the deportation of Egyptian activist Abdel Rahman al-Qaradawi, the son of the late cleric Yusuf al-Qaradawi, to the United Arab Emirates, an Egyptian source involved in the case told Asharq Al-Awsat that Cairo plans to formally request his extradition from Abu Dhabi once he arrives there.

Controversy has surrounded the case since Lebanon announced that the government had approved the deportation of Qaradawi to the UAE instead of Egypt, where he holds citizenship.

Former Lebanese Foreign Minister Adnan Mansour explained to Asharq Al-Awsat that citizenship is not an obstacle in extradition cases between countries, saying that a state may decide to extradite a person to another country even if they hold the nationality of a third state, as in the case of Qaradawi’s son.

According to Lebanese sources, the decision to extradite Qaradawi to the UAE is based on a warrant issued by the Council of Arab Interior Ministers. As a member of the council, Lebanon is obligated to comply with the UAE’s request, despite the absence of a direct bilateral extradition agreement between the two countries.

Additionally, the extradition decision was influenced by the fact that the charges against Qaradawi are criminal, not political, as political charges would prevent extradition and instead warrant protection under international conventions.

An Egyptian judicial source told Asharq Al-Awsat that the International Cooperation Office of Egypt’s Public Prosecutor had prepared a comprehensive file containing all rulings issued against Qaradawi to ensure that the extradition request met all legal requirements. This file was sent to Lebanese judicial authorities through official channels. However, Egypt has yet to receive a response from Lebanon, though one is expected in the coming days.

Dr. Mohammed Mahmoud Mehran, a member of the American and European societies for international law, told Asharq Al-Awsat that international law generally allows extradition when the individual is either a citizen of the requesting state, has committed a crime on its territory, or when the requesting state has a direct legal interest in the case.

As Qaradawi is an Egyptian citizen, Egypt “has the legal right to request his extradition under international law and bilateral agreements, provided all legal conditions are met,” Mehran said.

Meanwhile, Qaradawi’s lawyer, Mohammed Sablouh, confirmed plans to file an urgent appeal in Lebanese courts to prevent his client’s extradition, according to Reuters. Mehran explained that extradition laws grant the individual the right to appeal in court, while the requesting states also have the right to challenge decisions.

Mehran suggested that if Qaradawi is ultimately handed over to the UAE, it is highly likely he will later be extradited to Egypt after procedural requirements in the Emirates are fulfilled. This is due to the strong bilateral relations and close security coordination between Egypt and the UAE.

Abdel Rahman al-Qaradawi, who holds dual Egyptian and Turkish citizenship, was arrested in Lebanon on December 28 after returning from Syria. His arrest followed an Interpol red notice issued based on an in absentia ruling by an Egyptian court sentencing him to five years in prison for spreading false news, inciting violence, and terrorism. Before his arrest, Qaradawi appeared in a video filmed at the Umayyad Mosque in Damascus, where he made remarks considered offensive to both Egypt and the UAE.