Egypt launches new economic measures to fight global inflationary pressures fueled by the ongoing Russia-Ukraine conflict

Posted on March 28, 2022   |  

• On Monday, the Monetary Policy Committee of the Central Bank of Egypt (CBE) decided to increase key interest rates by 1%, a first since 2017.
• The overnight deposit and lending rates were increased by 100 basis points to 9.25% and 10.25% respectively.
• Soaring commodity and energy prices pressured the economy of Egypt which targets an inflation rate of 7% for Q4 2022.
• In February, the annual headline inflation in Egypt grew by 10% from 8% in January because of the rise in food prices.
• The trading price of 1 US dollar against 1 Egyptian pound jumped to 17.5 pounds for buying and 17.4 pounds for selling on Monday, after having stabilized at 15.6 pounds for two years.
• The Egyptian cabinet set a fixed price for unsubsidized bread for 3 months to ensure food security for those who mainly depend on bread in their meals.
• Under the new pricing system, the price of a 45-gram flat loaf is sold at 0.5 pounds, a 65-gram loaf at 0.75 pounds, and a 90-gram loaf at one pound, while packaged bread sold in supermarkets and grocery stores is priced at 11.5 pounds per kg.
• Retailers who will not comply with the new pricing system or store commodities will be fined 100,000 pounds ($5,714) to 5 million pounds ($285,714).