President Abdel Fattah El-Sisi has given a new directive to the Central Bank of Egypt, asking the regulator to intensify efforts to raise dollar proceeds from within the country while keeping a stable and flexible exchange rate. The instruction comes at a time when Egypt is battling inflation, currency pressure, and rising global economic uncertainty.
The President met with the Governor of the Central Bank of Egypt, Hassan Abdullah, on Monday in Cairo to review the current economic conditions. The discussions covered the government’s strategies to reduce inflation, strengthen foreign exchange reserves, and cushion the economy against external shocks. According to a statement from the presidency, El-Sisi made it clear that increasing Egypt’s access to foreign currency is now a top priority.
In the meeting, the Egyptian leader stressed that the availability of sufficient dollar resources would play a big role in stabilising the economy. He explained that a steady inflow of foreign exchange would make it easier to guarantee the supply of critical goods, petroleum products, and industrial raw materials. This, he said, would protect local industries from supply disruptions and help maintain normal production levels across the country.
Egypt’s economy has been under pressure in recent years as global commodity prices, high debt service costs, and external financing challenges weighed heavily on government spending. The country has also had to rely on foreign loans and aid from Gulf states, as well as support from international lenders such as the International Monetary Fund (IMF). For many Egyptians, the weakening of the pound against the dollar has made daily living more difficult, with imported goods becoming more expensive.
El-Sisi also highlighted the need to create new channels of foreign investment by giving the private sector greater opportunities in the economy. He called on policymakers to design better incentives for local and foreign investors to take advantage of the opportunities within Egypt’s large market and strategic geographic position. The President emphasised that the government cannot be the only driver of growth and that empowering the private sector would encourage job creation and innovation.
The discussions touched on how global economic developments are affecting Egypt’s domestic economy. With geopolitical tensions, fluctuating oil prices, and slowing international trade, the challenge of building a secure foreign exchange buffer has become more urgent. Egypt’s foreign reserves are vital for meeting its import needs, servicing debt, and maintaining confidence in the financial system. Hassan Abdullah, who has been leading the Central Bank since 2022, assured the President that the bank is working closely with government ministries to align fiscal and monetary policies.
The Central Bank is expected to focus on mobilising local resources such as tourism earnings, Suez Canal revenues, remittances from Egyptians working abroad, and exports of agricultural and industrial products. These are some of the strongest sources of foreign exchange for the country. Tourism alone has historically brought in billions of dollars annually, and despite global slowdowns, Egypt remains a popular destination because of its historical sites and Red Sea resorts. The Suez Canal is also a major asset, providing transit revenues that are critical to the government’s dollar earnings.
El-Sisi’s directive also comes as Egypt tries to manage its inflation problem. Prices of food, fuel, and other essentials have gone up in recent months, putting households under pressure. By ensuring that more foreign currency is available, the government hopes to reduce the strain on imports and stabilise prices in the market. Economists in Cairo note that a flexible exchange rate, as mentioned by the President, will also help ease distortions and discourage parallel market activity.
The government is equally looking at ways to attract more foreign direct investment. According to El-Sisi, new policies are being prepared to make Egypt more business-friendly. These include cutting red tape, offering tax incentives, and creating industrial zones where local and foreign investors can partner in production. By doing this, Egypt hopes to increase manufacturing output, grow exports, and generate more foreign currency from trade.
The President ended the meeting with a strong appeal for unity between the Central Bank and the government in implementing these reforms. He said the challenges facing the Egyptian economy are serious but can be managed with the right coordination and commitment. He also noted that increasing dollar inflows would secure the supply of fuel, goods, and industrial inputs, which in turn would benefit the ordinary citizen and businesses across the country.
This development highlights Egypt’s broader efforts to rebuild its economy in the face of global headwinds. The directive to increase dollar proceeds from local resources is a clear signal that the country wants to depend less on external borrowing and focus more on its own strengths. Whether through tourism, the Suez Canal, remittances, or exports, Egypt is looking inward for solutions while still positioning itself to attract global investors.
