Egypt is pushing to tie up a crucial financial package from the International Monetary Fund in Washington this week. Officials are hoping to stem a currency crisis that has restricted imports, leading to market unease over foreign debt repayments.
Egypt began talks with the IMF for a financial support package in March, soon after the Ukrainian crisis threw its already unsettled finances into further disarray. At the time, foreign investors pulled nearly $20 billion out of Egyptian treasury markets in a matter of weeks.
The foreign exchange shortage has led to a sharp drop in non-oil imports, which fell by 20% in the April-June quarter, according to central bank data. This has led to a shortage of input for both factories and retailers, and a backlog of goods and commodities including wheat at ports. Banks have tightened limits on dollar withdrawals from Egyptian pound accounts.
Source: reuters.com