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Egypt increased social support as the currency reached a record low
Posted on August 8, 2022 |
- The Egyptian pound dropped to an all-time low of over 19 to the dollar, it has not fallen so sharply since December 2016.
- In late March, Egypt's currency depreciated due to inflation, which lost 18% of its value overnight. Foreign currency reserves fell over $ 7 billion in April and May to be at $ 33.4 billion at the end of June.
- In Egypt, one-third of the population living below the official poverty line is scuffling with inflation of 15%, and most of its wheat imports came from Russia and Ukraine but Ukraine's invasion in February sent global prices soaring.
- Egypt also requested a new loan from the International Monetary Fund., which will add to an already sizeable foreign debt equivalent to 90% of GDP.
- Egypt will add 1 million families to a social safety net program that provides cash transfers, bringing the total number of beneficiaries to over 20 million.
- The "Solidarity and Dignity" program started in 2015 with World Bank funding in which payments to families start at 350 Egyptian pounds ($18.50) per month and are conditioned on children's school attendance.
- Families with married children before the age of 18 are excluded from the program, and 9 million needy families will also receive separate, exceptional aid over 6 months, for 1 billion Egyptian pounds ($53 million) per month.