OPEN// PM says govt adopting flexible dollar exchange policy to ensure stable economy

Middle East

10-04-2025

CAIRO, April 9 (MENA) - Prime Minister Mostafa Madbouli stressed on Wednesday that the government is adopting a flexible dollar exchange rate policy to ensure economic stability.
He described recent increases in the dollar exchange rate as natural developments in the forex market, stressing that part of the ongoing global economic conflict sparked by sweeping trade tariffs imposed by the Trump administration is about maintaining the dollar-yuan balance and boosting U.S. competitiveness against China.
China, Europe, and several other countries, in return, are responding with their own measures, meaning every nation is acting to stabilize its economic conditions, Madbouli made clear while speaking to reporters following the weekly cabinet meeting.
He said the government's main objective is to ensure stability, which was sensed by Egyptian citizens recently.
In short-term, the government is trying to spare citizens repercussions of war, maintain stability of the State, continue growth rates and ensure good economic indicators to boost the country's resilience and boost its capabilities to absorb international shocks, he said.
As long as the state is capable of securing US dollar resources while keeping Egyptian factories operational and ensuring the availability of production, there will be no real impact of any minor fluctuations caused by latest events on the stability of the economy, he further said.
Recent quarterly indicators showed a growth rate of 4.3%, he said. Had operations in the Suez Canal and petroleum sector proceeded under normal conditions, the growth rate would have exceeded 6%, he also said. But still, the Egyptian economy remains on the right track, he asserted.
Regarding the Commodity Exchange initiative, the Prime Minister referred to a recent meeting by President Abdel Fattah El Sisi and officials concerned to regulate the market to ensure fair trading and avoid any exploitation of trading in strategic commodities
He said the Commodity Exchange will serve as a transparent platform for trading essential goods to ensure fair pricing without any administrative interference.
He said the exchange will play a role in enhancing food security, protecting small farmers and producers, and will serve as a channel for the import and export of essential products, especially foodstuffs, with the aim of reducing import costs rather than volumes.
About the proposal to include mothers' names on national ID cards to address name duplication issues, Madbouli said the idea is under consideration and is being reviewed by the relevant authorities.
He referred to the decision to raise the wheat procurement price to encourage local cultivation and delivery to the state, saying results are promising and early figures show that the wheat procurement season will be very positive.
He referred to ongoing energy-related meetings, including a one held just before the press conference with the minister of petroleum. The meetings reviewed the outcome of the minister's recent visit to Italy's Eni energy company, which has clear plans to expand its investments in Egypt as regards natural gas and petroleum production within the coming period.
On rumors about the offering of some government hospitals like Hermel Hospital, he said the state's goal is to offer top-tier medical services to citizens at low or even no cost. He acknowledged deterioration in some institutions and the need for seeking the help of global expertise to improve medical services offered to citizens.
Though there are significant improvements in treating diseases like cancer, some cases still require treatment abroad, Madbouli said, adding that an agreement was reached that enables one of Europe's top three cancer centers, in partnership with the government, to treat Egyptian citizens, mostly for free. 'Is that wrong?', he asked, emphasizing that the new management model will be professional, with no layoffs, and aims to match international standards.
Madbouly added that Egypt now hosts a world-renowned medical institution that offers free services to citizens, a move that eliminates the need for costly travel abroad, assuring citizens that no employees in these institutions will be affected.
About plans to increase the number of gold investment funds, he said around 180,000 citizens have invested over EGP 1.6 billion, a move that exceeded expectations. The government plans to launch more funds, as they provide a viable investment opportunity for ordinary Egyptians, he added.
About the planned listing of military-owned companies on the stock exchange, he said advisory firms and banks are evaluating these companies and restructuring them to be offered whether for strategic investors or public offerings.
He reiterated the government's seriousness about the public offering file and it will begin this year, with other companies to follow in 2026.
Asked whether the decline in global fuel prices would lead to a decrease of oil prices at home, Madbouli made clear that Egypt, like other countries, does not buy oil at current spot prices. Instead, purchases are made via forward contracts based on average forecasted prices over 1–3 months. Payment method includes upfront fees with the remainder paid over 3–9 months, incurring interest.
On the new Sports Law, Madbouli said the cabinet has initially approved the draft law but asked for further legal review of certain articles, stressing that the new law is not directed at specific clubs or individuals, but rather meant to establish a sound framework for years to come.
He stressed that the government has no plans to resume the load-shedding program in summer despite the financial burden it has to endure to make this possible.
About the power linkage project with Saudi Arabia, he said it is progressing well, hoping that its first stage will be finalized in the summer. (MENA)
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