Egypt’s President Abdel Fattah el-Sisi commissioned his government to increase food subsidies.
It’s a step to cover low-income earners from the recent hikes in prices, as the pound weakens against the US Dollar.
The value of the US dollar against the Egyptian pound appreciated to EGP 11 in the parallel market on Thursday, driven by high demand from importers and the erosion of foreign currency holdings, which have followed receding direct foreign investments, tourism revenues, exports, and remittances.
The Egyptian government has issued about 20m subsidies cards, which provide food commodities to 80 million citizens across the republic, according to data from the Ministry of Supply.
To circumvent the current pressures on food commodities, the government will pursue two measures, according to a source in the Egyptian cabinet. In the first instance, the Ministry of Supply will offset inflationary pressures by allocating additional funds to the subsidy programme.
In the second instance, Armed Forces will sell food commodities to citizens from mobile outlets at prices 50% lower than the usual market value.
