Egyptian Member of Parliament, Mohamed Tharwat Akasha, has submitted a request for a briefing to the Minister of Finance and the Minister of Investment and Foreign Trade. The request concerns the sustainability of foreign currency availability to meet production and import needs. Akasha also seeks clarification on the impact of exchange rate flexibility on the stability of Egyptian markets and the economy.
Akasha's request highlights the importance of ensuring a steady supply of foreign currency to support economic activity. This is particularly crucial given the current economic challenges and the increasing dollar needs for production financing and external obligations. Despite improvements in the exchange market since March 2024, concerns remain about the sustainability of these improvements.
The MP's request notes that Egypt's net international reserves stood at approximately $57.35 billion by the end of September 2026. Additionally, remittances from Egyptians abroad reached $47.3 billion during the 2025/2026 fiscal year. Egypt has also received financing from the International Monetary Fund. However, the country still faces a current account deficit of around $22.5 billion.
The request raises questions about the state's ability to provide stable foreign currency resources. This is essential for meeting the needs of factories and importers, as well as fulfilling external obligations. The MP seeks clarification on the government's plans to increase export earnings and direct foreign investment.
Akasha has requested that the briefing be presented to the House of Representatives' Planning and Budget Committee. The committee will discuss the matter with the relevant ministers and officials. The MP's request includes several key areas of inquiry, including a detailed statement on foreign currency sources and sustainable resource volumes.
The request also seeks information on the volume of accumulated requests for foreign currency within the banking system. This includes the average duration for providing foreign currency to factories and importers. Furthermore, the MP wants to know the reasons behind the persistent current account deficit and the government's measures to reduce it.
The goal of the briefing request is to enhance exchange market stability. It aims to ensure that the needs of the productive sectors are met and that the Egyptian economy can withstand external challenges. This will be achieved through real and sustainable dollar resources.
Key points
- The Egyptian MP's request highlights concerns about the sustainability of foreign currency availability.
- The country's current account deficit stood at around $22.5 billion.
- The MP seeks clarification on the government's plans to increase export earnings and direct foreign investment.
