Egypt’s economic problems have worsened due to the conflict in Ukraine. Unfortunately for individuals who had planned purchases, like Aiad, the new import regulations implemented earlier this year to stop the loss of foreign exchange reserves and support the pound caused shortages of products, which drove inflation to levels not seen in four years.
Despite an influx of cash from Egypt’s Gulf allies and the new import regulations; foreign currency reserves decreased to $33 billion in July from $41 billion in January. Since March, the Egyptian pound’s value against the dollar has fallen by more than 22%.
Before the central bank’s most recent import regulation loosening, exemptions for necessary products and industrial inputs were in allowance; yet, agents have still struggled to pay for the necessary letters of credit.
The building industry, which assisted Egypt in maintaining economic growth throughout the COVID-19 pandemic, has been harm by the delays, according to developers. “Some shipments could be detained (at ports) for three or four months.
One proprietor of a pharmacy in Cairo claimed that although domestic producers have reduced production; this is due to difficulties importing active ingredients, Egyptian medicine suppliers are experiencing trouble importing medications created elsewhere.