Egypt's Currency Loses 17% of its Value Ahead of Ramadan

Africa News

Prices of food are going up in many countries in North Africa and the Middle East.

In Egypt as Ramadan nears and spending rises the local currency has lost 17% of its value.

"People's joy in welcoming Ramadan is different this year as this is the second Ramadan after Covid-19. Yes some prices are rising a bit and are different from other places, but people are shopping because they are happy that Ramadan is here and that the once a year season has arrived", said Mahmoud Khaled, a resident of Cairo.

Another resident, Dalia Amr, confirmed the increase in food prices.

"Yes, the prices might be higher but the people are shopping (for Ramadan goods) like every year because they like to do something new and be happy as they welcome Ramadan".

Egypt is a leading importer of wheat from Ukraine and Russia. The conflict between the two countries is affecting supplies.

The authorities have started implementing ways of stabilizing the economy.

"The devaluation of the currency to the US Dollar affected us and restricted the sales, as some goods are expensive while other prices are still fine", concluded merchant Sadat El khateeb.

The Egyptian government has already started talks at the IMF over a new assistance package, the third in six years.