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Insider Insights: Revealing the Root Causes of Egypt’s Grave Crisis from an Expert’s Perspective, Shared with RT

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Nader Nureddin, an adviser to Egypt’s former minister of supply, spoke of the serious crisis Egypt is facing after a sharp rise in prices in the country.

Nur El-Din explained in RT statements that the crisis of unprecedented high prices for meat, poultry, eggs and butter in Egypt began the fourth month in a row due to a significant increase in grain and oil prices after the Russian-Ukrainian crisis. since Egypt relies on this origin for 80% of its grain imports. And with it many Arab countries.

He noted that Egypt used to import about $15 billion of its food needs a year, which doubled to $30 billion due to the high food and energy price crises last year, which caused a liquidity drain in foreign exchange and a crisis in its availability, which led to the floating exchange rate of the Egyptian pound and its fall by half against other currencies.

Nur ad-Din pointed out that the issue has doubled the price of food and feed for Egyptian consumers, and the lack of liquidity in foreign exchange has led to the accumulation of shipments of corn and soybeans, which are two components of feed, in Egyptian ports due to the lack of foreign exchange to pay for these shipments, and this case led to delays in the unloading dates. These ships and the payment of a late fee for each day that the stern boats continue without unloading. Thus, even after the Egyptian government managed to get some foreign exchange to unload some shipments of feed, importers would pay large sums of delay penalties and rental fees for boats whose unloading was delayed.

He continued: “Thus the problem of the shortage of foreign exchange has led to prices doubling several times, so that the price of a ton of yellow corn rose to 20,000 pounds instead of nine thousand before the crisis, and a ton of soybeans reached 40,000 pounds. instead of 12 thousand before the financial liquidity crises and rising food prices.”

Nour El-Din stressed that the Egyptian consumer has paid a high price for the high food and energy price crises and the foreign exchange liquidity crisis.

Source: RT

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