Egypt seeks to rein in impacts of global economic crisis, has sufficient basic commodities: Sisi

Ahram Online , Thursday 24 Mar 2022

President Abdel-Fattah El-Sisi has said Egypt is trying to limit the repercussions of the current global crisis, assuring the public that the country has a sufficient stock of all basic commodities that can meet its demands for many months.

El-Sisi during his inspection of the Police Academy on Thursday.

The current economic crisis has had major impacts on oil prices and supply chains, not only on Egypt, but on the whole world, El-Sisi added during his inspection of the Police Academy on Thursday.

The president voiced his hope that the crisis will end soon, especially since the country has been hit over the past two and half years by the coronavirus pandemic.

"This is a huge burden on any economy in the world, not only the emerging economies," affirmed the president.

The country, however, has "no problem with the availability of basic commodities at all," he pointed out.

On Wednesday, El-Sisi urged Egyptians to rationalise food consumption during the upcoming holy month of Ramadan, stressing, however, this does not mean Egyptians should eat less, assuring the public that all goods are available in outlets nationwide.

The Russian-Ukrainian war has had a direct impact on the Egyptian economy, which imports 80 percent of the key strategic commodity of wheat from the two warring countries.

Supply chains of wheat from the Black Sea ports to the Middle East and North Africa region has been disrupted by the war, causing soaring prices in the international markets and triggering inflationary pressures in Eggypt.

However, the Egyptian government said over the past weeks that its wheat stocks would be sufficient till the end of the year, with the country setting its eyes on increasing local wheat cultivation and supply as well as buying from alternative markets to meet its grain needs.

In addition, the Russian-Ukrainian war could deal a serious blow to the tourism sector in Egypt, which depends heavily on visitors from the two warring countries.

On Wednesday, Egypt's cabinet said the government was working on an integrated package of financial measures to support various economic sectors and the groups hit hardest by the external shocks.

Responding to the ongoing economic challenges, the Central Bank of Egypt (CBE) raised on Monday the key interest rates by one percent (100 basic points).

In addition, the Ministry of Finance launched an incentives package worth EGP 130 billion to support social protection efforts.

Egypt has also requested discussions with the International Monetary Fund (IMF) about a new programme that "possibly includes additional financing" to support the country's plans for comprehensive economic reforms.

Short link: