Cairo -

Anxiety and anticipation dominate the Egyptian family after the Egyptian pound continued to decline in recent times and the dollar broke the 30-pound barrier for the first time in history, amid indications in the last hours that it will rise again, at a time when the Egyptian government seeks to absorb economic shocks and popular anxiety with moves that some see. not enough.

According to Bloomberg Agency, the devaluation of the Egyptian pound against the dollar during the past months has caused inflation rates in the country to rise to more than 20%.

Observers - who spoke to Al-Jazeera Net - believe that the continued depreciation of the Egyptian pound reinforces the erosion of the purchasing power of the Egyptian family and the rise in prices of basic goods and services, and pushes the country into harsh conditions.

On the other hand, the Egyptian government clings to cautious optimism and tries to reassure the Egyptians and extend their hopes for a better change in the future.


serious consequences

The economic expert, Mostafa Abdel Salam, believes that the ability of the Egyptian family to face the consequences of the devaluation of the pound has become weak, in light of the continued rise in the price of the dollar and the government’s continued reduction of subsidies and the increase in taxes, fees, and the cost of water, electricity, public transportation, and other bills.

And Abdel Salam adds to Al-Jazeera Net that if a sector of Egyptians bore the burdens of the flotation in 2016, the majority cannot bear to repeat this scenario again in a more violent manner.

The citizen is facing an exorbitant price for two reasons: first, inflation and the depreciation of the pound, and second, the repercussions of the Ukraine war and the high prices of grain, food, petroleum derivatives, and gas.

Abdel Salam asserts that the consequences of all this will be reflected directly on the Egyptian citizen, as about 70% of the Egyptian market’s needs are imported from abroad, and the rise in the dollar will raise the cost of producing goods.

Which will push producers and manufacturers to increase prices.

Abdel Salam warns that the currency's collapse has serious consequences.

Including increasing rates of poverty, unemployment, crime, divorce and other social problems. It also has a huge cost on the industrial and productive sectors, and this pushes factory owners to close them due to the high interest rate and production costs.

This will negatively affect the labor market and the state's tax revenues.

In the same context, economic expert Abdel Hafez Al-Sawy expected that Egyptian families would face difficult circumstances in the coming periods, such as high rates of poverty and destitution in conjunction with the increase in inflation and prices.

Al-Sawy expressed his rejection of the Egyptian government's continued reliance on foreign loans to pass the current stage.

Government moves and presidential reassurance

For his part, Egyptian President Abdel Fattah El-Sisi called on the Egyptians to be reassured, not to be afraid, to face challenges, and to stand by Egypt in its time of "tiring" and not to abandon it, stressing the importance of not repeating rumors or excessive anxiety.

According to an official statement by the Presidency of the Republic, he confirmed the availability of all basic food commodities, within the framework of the state's advance planning to preserve strategic stocks and support the stability of food security.

Prime Minister Dr. Mostafa Madbouly launched a new initiative to support the productive sectors (industry and agriculture), as part of the government's continued increase in its capabilities to face the repercussions of global crises.