Dollar's rise within normal range under flexible exchange rate system: Madbouly

Daily News Egypt

10-04-2025

Prime Minister Mostafa Madbouly affirmed on Wednesday that the recent uptick in the US dollar's value against the Egyptian pound is a normal development within currency markets and poses no cause for concern. He emphasized that Egypt adheres to a flexible exchange rate system aimed at preserving economic stability and navigating external shocks.
Speaking during a press conference, Madbouly said the minor depreciation of the pound is temporary and has minimal impact on the broader economic framework. He stressed that the government's key priorities include maintaining macroeconomic stability, ensuring the availability of essential goods and petroleum products, supporting local industry, and incentivizing investment.
The Prime Minister also announced that discussions are underway on how to repurpose the government ministries' complex while preserving its architectural and heritage value. The site is expected to be put up for development in June.
Commenting on global economic headwinds, Madbouly stated that recent U.S. policy decisions suggest an escalating economic and trade war, rather than a military conflict. He noted that countries worldwide must now focus on resilience, economic survival, and safeguarding national interests.
To this end, he said he has directed the government's economic group to prepare a set of actionable scenarios to bolster stability, improve the investment climate, and accelerate the localization of key industries.
Madbouly also disclosed that nearly 180,000 citizens have invested a total of EGP 1.6 billion in gold investment funds, as the government pushes to expand this sector further.
On the energy front, the Prime Minister revealed that Italian energy giant Eni plans to ramp up its investments in Egypt in the coming period, with a focus on increasing natural gas production.
Addressing the recent capital outflows following U.S. tariff announcements, Madbouly acknowledged that Egypt was among the countries impacted by the global investor response. He confirmed that outflows were recorded on Sunday and Monday, but have since slowed. The government, he added, is closely coordinating with the Central Bank to manage the situation, which he said has been largely contained over the past two days.
Madbouly also highlighted the role of Egypt's commodity exchange in improving the governance of strategic goods trading and advancing national food security.
Regarding domestic developments, the Prime Minister commented on the recent trial launch of the new entrance to the Giza Pyramids archaeological area from the Fayoum side. 'Things have started to stabilize, and this is a trial period that will continue until May,' he said.
He added that several cooperation agreements have been signed with France, including in healthcare and higher education.
'In these turbulent times, the government is working diligently to meet all basic needs of citizens,' Madbouly said, noting that hedging strategies have been adopted to ensure price stability of essential imports. He added that regular coordination meetings are held to monitor the availability of key goods.
Finally, Madbouly affirmed that there will be no return to electricity load shedding during the summer, and that comprehensive preparations have already been made to meet seasonal energy demand.