News

General Motors Temporarily Halts Operations in Egypt Due to Foreign Currency Crisis

General Motors Temporarily Halts Operations in Egypt Due to Foreign Currency Crisis

Photo: Associated Press
Photo: Associated Press

American automotive company General Motors has temporarily suspended its operations in Egypt due to the country’s foreign currency crisis, Reuters reported.

According to an unnamed company source, GM, which is responsible for the manufacturing of about 25 percent of Egypt’s cars, decided to stop production temporarily until the company is able to clear imports “held up in customs.”

“The entire sector has a currency crisis [and] we can’t make a car without some of the parts,” the source told Reuters. “There is still some leeway with the government and the banks to solve the issue.”

Egypt has been struggling to regain its¬†rapidly depleting foreign currency reserves since the ouster of Hosni Mubarak in 2011. In the five years since, Egypt’s foreign reserves have gone down more than 50 percent, from USD 36 billion to USD 16.477 billion as of last month.

In an effort to ease the foreign currency crisis, recently appointed governor of Egypt’s central bank Tarek Amer imposed new rules to curb “unnecessary imports.” In an interview with Bloomberg last month, Amer said the measure may save around USD 20 billion this year alone.

Egypt Court Declares Filming of 'Gay Cairo Bathhouse Raid' as 'Serving Public Interest'
US Secretary of State Praises Egypt As 'Leader of the Arab World'

Subscribe to our newsletter


News

More in News

azzasoliman

Egyptian Women’s Rights Activist Azza Soliman Released on Bail after Arrest

Egyptian StreetsDecember 8, 2016
Credit: Martin Roemers/Anastasia Photo

Professors and Doctors Among 45 Arrested in Egypt Organ Trafficking Ring

Egyptian StreetsDecember 6, 2016
05black

Egypt’s Foreign Reserves Rise to $US 23 Billion

Egyptian StreetsDecember 6, 2016
1200x-1-1024x697-1

Naguib Sawiris Steps Down as CEO of Orascom in Surprise Resignation

Egyptian StreetsDecember 6, 2016
One of the leaked images allegedly from a Heinz Egypt factory.

Senior Heinz Egypt Employee Arrested After 62 Tonnes of Rotten Tomatoes Found

Egyptian StreetsDecember 6, 2016
sticlute-de-parfum-2

Import Tariffs on 320 Goods Increased by up to 60 Percent in Egypt

Aswat MasriyaDecember 5, 2016
One of the leaked images allegedly from a Heinz Egypt factory.

‘Disgusting Video’ of Ketchup Production Called Misleading by Heinz Egypt

Egyptian StreetsDecember 4, 2016
squashwomen

Egypt’s Women Make Squash History Taking Top Three Spots in World Ranking

Egyptian StreetsDecember 4, 2016
Egyptian Streets is an independent, young, and grass roots news media organization aimed at providing readers with an alternate depiction of events that occur on Egyptian and Middle Eastern streets, and to establish an engaging social platform for readers to discover and discuss the various issues that impact the region.

© 2016 ES Media UG. All Rights Reserved.