Egypt expected to raise local wheat procurement price to support farmers: Cabinet



Sun, 25 Feb 2024 - 06:25 GMT


Sun, 25 Feb 2024 - 06:25 GMT

CAIRO - 25 February 2024: The Egyptian government is anticipated to raise the local wheat procurement price per ardeb this year as a means of supporting farmers amidst inflation, according to a statement released by the Cabinet on Sunday.

The Cabinet stated that the final prices will be determined soon following a ministerial meeting.

Prime Minister Mostafa Madbouly convened a meeting today to review measures aimed at obtaining the necessary foreign currency to acquire essential commodities, including wheat, cooking oil, and powdered milk.

During the meeting, Governor of the Central Bank of Egypt (CBE), Hassan Abdullah, emphasized that securing foreign currency for the acquisition of strategic goods and medicine is a top priority for the bank, in coordination with relevant ministries and state entities.

Reports mentioned by the Cabinet indicate that there is currently $1.3 billion worth of commodities, medicine, and fodder held in customs.

Furthermore, the Cabinet noted that recent positive developments in foreign currency influx have led to a decrease in prices of corn and soybeans in local markets.

Multi-billion-dollar Egypt-UAE deal

On Friday, Egypt disclosed the securing of $35 billion in foreign direct investment (FDI) over the next two months through a groundbreaking agreement between Egypt and the United Arab Emirates for a development project in the Ras El-Hikma area on the North Coast.

This represents the largest amount of FDI in Egypt's history, which Prime Minister Mostafa Madbouly stated will help alleviate the country's current foreign currency shortage.

Over the past two years, Egypt has been confronted with a significant shortage of hard currency and severe inflation.

Three rounds of currency devaluation have been implemented since March 2022, resulting in a depreciation of over 70 percent in the value of the Egyptian pound against the US dollar and substantial price increases for essential goods.

In a positive turn of events, the International Monetary Fund (IMF) recently announced progress in its discussions with Egypt to strengthen the country's existing $3 billion loan, aimed at providing additional foreign currency funds.

IMF spokesperson Julie Kozack stressed the importance of a comprehensive support package to tackle Egypt's economic challenges and achieve financial stability.

Prime Minister Madbouly stated on Thursday that the government is in the final stages of securing an agreement with the IMF.

Meanwhile, the gap between the official exchange rate of the US dollar in the formal market and its rate in the parallel market has narrowed this month, thanks to security campaigns targeting illicit foreign currency trading.



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