Tareq

Egypt’s Central Bank Governor Resigns Amid Economic Crisis

On the 17th of July 2022, Egypt’s central bank governor, Tareq Amer, resigned as the country struggles to address its economic woes. President Abdel Fattah al-Sissi received the resignation of Tareq Amer whose stipulated term should run from 2015 to 2023 before he was appointed as presidential adviser. 

The reasons for his resignation remain unknown. However, he has been the governor of Egypt’s central bank since November 2015. The information reaching us states that no replacement has been aired yet.

In a tweet from Timothy Kaldas, an analyst, and risk adviser, he said “whoever took over would inherit a “poisoned chalice”. He further mentioned that Amer has left behind an awful and devastating job for his successor.

Effect of the Economy and Financial Instability on Egypt

 In recent months, Tareq Amer has been accused of mis-handling the country’s financial challenges which have caused its local currency to slide against the U.S. dollar. Part of the economic-financial crisis at that point are:

  1. The reduction in the value of pounds caused the U.S dollars to be exchanged at over 19.20 pounds in Egypt’s banks. 
  2. Increase in inflation as a result of the Russian-Ukrainian war. Being the largest wheat importer, a large number of its imports are from Russia and Ukraine. 
  3. As of July, the annual inflation in Egypt reached 14.6%. This added to the problems faced by consumers. Especially those with low income that have to meet their daily needs.

Egyptian Government Warns Local Media

In response to this, the Egyptian government has laid down an instruction for local media to desist from criticizing and condemning Taraq Amer’s regime. Instead, they should promote his resignation as an avenue for continuity and give other persons the opportunity to occupy the position.

Presently, the Egyptian government is in a close meeting with the International Monetary Fund for additional loans to support its reform program and to help tackle the economic and financial instability as a result of the European war.

Egyptian Government Curbs Electricity Consumption

In July, the Egyptian government set a national plan to save electricity and domestic energy consumption to enable exporting its natural gas to generate foreign currency. The prime minister said lights at the government houses would be switched off at the end of the working day to turn on that of the sports arenas, and public squares. 

This tactic was implemented to ease the consumption of electricity at shopping centers.