Egypt raises prices terrifyingly after a strong jump in the dollar against the pound and Israeli intervention to strangle the Egyptian economy

https://www.youtube.com/watch?v=QG6IofrnGFU
New Egyptian economy presented by this episode of Samri Channel.
Starting with the press conference held by Egyptian Prime Minister Dr. Mostafa Madbouly, regarding increases in the prices of services and goods in Egypt since the beginning of the new year 2024, where he said that the Egyptian state bears annual support for 5 sectors, with a total of 342 billion pounds annually. He added: Every morning, starting at dawn and before we go to work; Thousands of warehouses work to bake 275 million loaves of loaves daily, meaning 100 billion loaves of loaves per year.” Madbouly added: “Until 2021, the cost of support was less than 50 billion pounds; Today, because we have not increased the price of living, the cost of bread is 91 billion pounds.” The Prime Minister stated that in 2021, “we have ended subsidies for petroleum products. Today, Egypt consumes 18 billion liters of diesel, and the state subsidizes each liter with 5 pounds, meaning 90 billion pounds...supply and support.” “The food supply is 36 billion pounds, and as for the stove, Egypt consumes 280 million tubes annually, and the actual cost is 200 pounds. We sell them for 75 pounds, meaning 35 billion pounds annually.”

Dr. Mostafa Madbouly, Prime Minister, discussed everything related to the electricity file, saying: “I will talk specifically about electricity; every citizen is charged for a kilowatt-hour, and the cost of a kilowatt to the state amounts to 177 piasters. Before that, the number was much lower..


All segments today are paying less than their cost to the state.” Madbouly added: “I asked the Minister of Electricity to set scenarios for the increase, how to move, and how to overcome the crisis, and a violent scenario was set; To reduce support in two years, the other alternative is to spread the problem over 5 years. In order to reduce the cost to the citizen.” The Prime Minister continued: “The first tranche, from zero to 50 kilowatts, was charged at 48 piasters; increased it to 58 piastres; That means 10 piasters... and so on. The third tranche increased by less than 10 piasters. These tranches increased from the beginning of the month; It represents 65% of the Egyptian people.” Madbouly noted that the result of the increase we announced “will shrink from 90 billion to 75 billion pounds, and we decided to spread the issue over 5 years.”

Madbouly added: “Today, the latest figures for electricity losses or support reached 90 billion pounds this year alone. When I sum up what I said, that means support is 342 billion pounds. Two years ago, it was less than 100 billion pounds.” Madbouly explained: “I am trying to put the picture in front of the citizen. This is the Egyptian people’s money. We go into debt and charge the budget. Two years ago we were taking loans for less than 10%, today it exceeds 25%.. All of these are burdens that cannot be continued, so we endured the period.” In the past, while we were making decisions, we said that the last postponement would be at the end of 2023.” The Prime Minister continued: "It is impossible for any country or budget to continue increasing debt and leverage, and the gap in support, which was one of our most important gains."

In another context, International Monetary Fund data revealed that Egypt will pay the Fund $261 million this January, as part of $6.7 billion in debts that it must pay to the international institution during 2024. Egypt paid about $564 million to the Fund this December, bringing the total amount paid to about 3.764 billion dollars, and Egypt’s debt to the Fund increased during the Corona pandemic after it obtained an aid package approaching 8 billion dollars, in addition to about 12 billion dollars, the value of its loan in 2016, through which it implemented the economic reform program. The Director of the International Monetary Fund, Kristalina Georgivia, said that they are seriously considering increasing the value of Egypt's loan, to help it overcome the challenges of the war in Palestine on tourism. Bloomberg reported that the value of the new loan may be $6 billion, while HSBC believes that increasing member states’ quotas by 50%, as recently approved by the Fund’s Executive Board, may add $8 billion to financing, which is what the investment bank agreed with. The American “Morgan Stanley” stated in a research report that Egypt’s repayment of part of the debts and increasing members’ shares guarantees an increase in the value of the financing program.

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