Egypt.. The government postpones "Dollar Projects" to rationalize public spending

Dubai, United Arab Emirates - Egyptian Prime Minister Mustafa Madbouly issued a package of decisions for "rationalizing public spending" and postponing "dollar projects" at a time when the country is facing a significant shortage in foreign currency reserves. According to a government statement on Monday, Madbouly's decisions included postponing the implementation of any new projects that have not yet started and have a "clear dollar component."

In addition to the necessity of obtaining the Ministry of Finance's approval for expenditures in foreign currency after coordination with the Central Bank, with "postponing expenditures on any needs that do not carry an extreme necessity." The decisions included rationalizing all travel activities related to government entities and public and economic authorities abroad "except for extreme necessity and after the Prime Minister's approval."

Since the outbreak of the war in Ukraine last February, hundreds of millions of dollars have exited Egypt for foreign investors, amid a rising wave of inflation that has led to consecutive price increases, alongside the depreciation of the Egyptian pound against the dollar (27.60 pounds to the dollar).