URGENT: Egypt has no dollar crisis, PM says amid global market volatility

Egypt has sufficient foreign currency reserves and faces no dollar shortage, Prime Minister Moustafa Madbouly said Tuesday, as global market volatility linked to escalating Middle East tensions fuels pressure on emerging economies.

Speaking at a press conference, Madbouly said Egypt remains committed to a flexible exchange rate system under its economic reform programme, with the currency determined by supply and demand.

“The country has adequate reserves and we have no dollar crisis whatsoever,” he said, adding that the Central Bank of Egypt (CBE) is operating with full flexibility to meet foreign currency needs.

The remarks come after sharp swings in the US dollar in recent days and rising global energy prices. Oil has climbed above $84 a barrel, up from around $69 only days earlier, following heightened geopolitical tensions and reports of disruptions at liquefaction facilities in parts of the Gulf.

Madbouly described the current environment as exceptional, saying exchange-rate movements reflect global supply-and-demand dynamics rather than domestic imbalances. Stability would return once geopolitical conditions normalise, he added.

The prime minister also addressed public concerns about potential shortages or sharp price increases, warning that the government would not tolerate hoarding or monopolistic practices aimed at exploiting the conflict to raise prices.

Egypt has the financial capacity to secure needed imports and prevent shortages, he said, adding that the government is closely monitoring fuel and natural gas price developments as it works to cushion the domestic economy from external shocks.

Attribution: Amwal Al Ghad English