Egypt tackles global energy volatility from stronger economic position – PM

Egypt is facing the ongoing global energy volatility from a position stronger than in previous challenges, Prime Minister Moustafa Madbouly said Tuesday, pledging to keep production and economic activity on track.

Speaking at his weekly press conference, Madbouly said the government is working around the clock with the Central Bank of Egypt (CBE) to monitor monetary policy, maintain exchange rate flexibility, and curb inflation, while ensuring sufficient foreign currency resources for state needs. “Our main goal is to keep the economic system running at full capacity and ensure that the wheels of production continue turning,” he said.

The energy crisis comes amid escalating tensions in the Middle East, including conflict between the United States, Israel, and Iran, and Tehran’s strikes on U.S. bases in the Gulf. The unrest drove oil prices to more than $119 a barrel on Monday, their highest since mid-2022, before easing to around $93 after US President Donald Trump predicted the war could end soon, alleviating fears of prolonged supply disruptions.

He acknowledged the pressures confronting both the government and citizens in a world grappling with unprecedented volatility. “Some measures, though necessary, are exceptional and temporary,” Madbouly said. “The government and citizens are sharing the burden during this period, which we hope will end as quickly as possible.”

Highlighting Egypt’s economic resilience before the crisis, the prime minister noted that all sectors were expanding and forecasts by local and international institutions projected strong growth. “We aim to ensure this unprecedented crisis inflicts minimal damage on Egypt’s economy,” he said, emphasising the government’s commitment to keeping industrial production and public services running.

Attribution: Amwal Al Ghad English