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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

Blinken Seeks to Avert Syria Turmoil with Europeans on Final Trip

US Secretary of State Antony Blinken (L) met French FM Jean-Noel Barrot in Paris. Ludovic MARIN / POOL/AFP
US Secretary of State Antony Blinken (L) met French FM Jean-Noel Barrot in Paris. Ludovic MARIN / POOL/AFP
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Blinken Seeks to Avert Syria Turmoil with Europeans on Final Trip

US Secretary of State Antony Blinken (L) met French FM Jean-Noel Barrot in Paris. Ludovic MARIN / POOL/AFP
US Secretary of State Antony Blinken (L) met French FM Jean-Noel Barrot in Paris. Ludovic MARIN / POOL/AFP

US Secretary of State Antony Blinken was heading on Thursday to Rome for talks with European counterparts on bringing stability to Syria in the face of flare-ups with Türkiye, capping what is likely his final trip.
Blinken had been expected to remain in Italy through the weekend to join President Joe Biden but the outgoing US leader scrapped his trip, which was to include an audience with Pope Francis, to address wildfires sweeping Los Angeles.
Blinken, on a trip that has taken him to South Korea, Japan and France, was heading on Thursday from Paris and will meet for dinner in Rome with counterparts from Britain, France, Germany and Italy.
In Paris on Wednesday, Blinken said the United States was united with the Europeans on seeking a peaceful, stable Syria, a month after the opposition factions toppled longtime ruler Bashar al-Assad.
But concerns have mounted over Türkiye’s threats against Syrian Kurdish fighters, who have effectively run their own state during the brutal civil war engulfing Syria.
A war monitor said that battles between Turkish-backed groups, supported by air strikes, and Kurdish-led forces killed 37 people on Thursday.
The Kurdish-led Syrian Democratic Forces (SDF) have worked with the United States on Washington's main stated priority -- battling the ISIS extremist group -- but Türkiye says the SDF has links with PKK militants at home.
Blinken in Paris said that Türkiye had "legitimate concerns" and that the SDF should gradually be integrated into a revamped national army, with foreign fighters removed.
"That's a process that's going to take some time. And in the meantime, what is profoundly not in the interest of everything positive we see happening in Syria would be a conflict," Blinken told reporters.
"We'll work very hard to make sure that that doesn't happen."
Blinken said he expected no change on goals in Syria from US President-elect Donald Trump, who takes over on January 20.
During his last term, Trump briefly said he would accede to a plea by Turkish President Recep Tayyip Erdogan to pull out US troops that have been working in Syria with the Kurdish forces.
But he backed down after counter-appeals led by French President Emmanuel Macron.
When to ease sanctions?
Also on the agenda in Rome will be whether and when to ease sanctions on Syria.
French Foreign Minister Jean-Noel Barrot said on Wednesday that some sanctions "could be lifted quickly".
The US Treasury Department said this week it would ease enforcement on restrictions that affect essential services.
But US officials say they will wait to see progress before any wider easing of sanctions -- and the Biden administration is unlikely in its final days to accept the political costs of removing Syria's victorious Hayat Tahrir al-Sham rebels from the US "terrorism" blacklist.
While Western powers are largely in synch on Syria, some differences remain.
Blinken reiterated US calls on European countries to repatriate citizens of theirs detained in Syria for working with the ISIS group and languishing in vast camps run by the Kurdish fighters.
France and Britain, with painful memories of attacks by homegrown extremists, have little desire to bring militants back.
The Rome talks come a week after the French and German foreign ministers, Jean-Noel Barrot and Annalena Baerbock, jointly visited Damascus and met new leader Ahmed al-Sharaa to encourage an inclusive transition.
Sharaa, has promised to protect minorities after the fall of the iron-fisted but largely secular Assad.
A senior US official in turn said last month on meeting Sharaa that Washington was dropping a $10-million bounty on his head.
Italian Foreign Minister Antonio Tajani will pay his own visit to Syria on Friday, during which he plans to announce an initial development aid package.
Italy's hard-right government has pledged to reduce immigration. Millions of Syrians sought asylum in Europe during the civil war, triggering a backlash in some parts of the continent that shook up European politics.
In contrast to other major European powers, Italy had moved to normalize ties with Assad just weeks before he fell, presuming at the time that he had effectively won the war.