Egypt: President Al-Sisi declares economic dollar crisis

Egypt dollar crisis

Egypt’s President declares a dollar crisis just days after finalising a nuclear plant deal with Russia, according to Al-Arabia and agencies.

President Abdel Fattah al-Sisi announced the recurring issue of fluctuation of the Egyptian pound during a speech on 25th January, known to Egyptians as the 72nd Police Day.

Throughout his speech, President Al-Sisi commended Egyptians for their resilience in the country’s economic hardships. However, the president had few solutions to offer his citizens other than encouraging the need for national unity and pledging that the government are actively seeking solutions.

The US dollar consistently hinders Egypt’s financial stability because the state’s service expenses are dealt with in dollars, which are then sold to Egyptian citizens in Egyptian pounds, al-Sisi explained. The current exchange rate equates 1 USD to 30.9 EGP.

Two days before al-Sisi’s call of crisis, he facetimed Russian president Vladimir Putin to finalise a construction deal for a new nuclear power plant. The Dabaa power plant will allegedly be the fourth and final nuclear site to be built by Russian corporation, Rosatom.

On the 18th December, Al-Sisi managed to secure his third presidential term in office, despite Egypt’s drastic decline and draining of economic resources – which critics say he is responsible for.

The speech disclosed that Israel’s war in Gaza has negatively impacted Egypt’s tourism and the importation of natural gas, that burdens the country with a $3 billion bill every month.

Furthermore, al-Sisi’s speech expressed his concern over the significant decline in revenues on the Suez Canal due to the attacks on nautical vessels in the Red Sea. The canal is a crucial source of foreign income for Egypt, however, the Houthi assaults have led to a drop in revenues by 40%.

Negotiations with delegations from the International Monetary Fund are underway in Cairo to discuss a potential $3 billion loan as well as a comprehensive program of economic reforms.

Al-Arabia News/Reuters


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