News

UAE Pledges $4 Billion to Support Egypt’s Economy, Central Bank

UAE Pledges $4 Billion to Support Egypt’s Economy, Central Bank

Photo: Anadolu Agency
Photo: Anadolu Agency

The United Arab Emirates pledged USD 4 billion to Egypt to help boost the country’s economy, the Emirates’ state news agency WAM reported on Friday.

“The aid comes in the framework of strategic cooperation and coordination between the two countries, out of the USE’s firm supportive position toward Egypt and its brotherly people to promote the construction and development process and out of recognition of Egypt’s pivotal role in the region,” WAM said.

The report did not clarify whether the pledge referred to a previous offer from the UAE to give Egypt the same amount, which was announced at Egypt’s Economic Development Conference, held in Sharm El Sheikh last year.

Emirati Crown Prince Sheikh Mohammed bin Zayed al-Nahayan had arrived in Cairo on Thursday for a brief visit, during which he and Egyptian President Abdel Fattah Al-Sisi toured several projects related to the “new capital city,” a mega-project estimated to cost USD 45 billion.

The deposit in Egypt’s Central Bank is aiming to support the country’s foreign reserves, which have been depleted since the 2011 uprising the toppled former president Hosni Mubarak.

Egypt’s foreign reserves reached USD 16.5 billion, down from nearly USD 36 billion prior to the 2011 revolution.

Meanwhile, the black market price for the US dollar has skyrocketed, with traders selling each dollar for EGP 11.35, as opposed to the official rate of EGP 8.78.

Current Central Bank Governor Tarek Amer has attempted to narrow the gap between the official and black market rates since taking over from former governor Hisham Ramez in November of last year.

Last month, Amer decided to devalue the pound by 14.5 percent against the dollar. However, the decision only curbed unregulated trading for a short period of time, after which the black market rates continued to rise steadily.

Despite the economic difficulties, Amer has maintained that the Central Bank has no intention of further devaluing the country’s currency.

Egyptian Startups Win Top Three Spots, EGP 320,000 in Grants in Entrepreneurial Competition
Egyptian Teacher Caught Abusing, Insulting Student in Classroom

Subscribe to our newsletter


News

More in News

Egypt Records 912 COVID-19 Cases, 89 Deaths

Egyptian StreetsJuly 12, 2020

Legendary Egyptian Dancer Mahmoud Reda Dies Aged 89

Egyptian StreetsJuly 10, 2020

Egypt Passes Law Concealing Identity of Sexual Harassment, Assault and Rape Victims

Egyptian StreetsJuly 9, 2020

Ethiopia to Start Filling GERD in July: PM

Egyptian StreetsJuly 8, 2020

Accused Sexual Predator Ahmed Zaki Confesses to Blackmail, Intimidation: Egyptian Public Prosecution

Egyptian StreetsJuly 7, 2020

Egypt’s Minister for Military Production Mohamed El-Assar Dies at 74

Egyptian StreetsJuly 7, 2020

Multiple Egyptian Women File Official Complaints Against Accused Rapist Ahmed Bassam Zaki

Egyptian StreetsJuly 6, 2020

Al Azhar Encourages Victims of Assault to Speak Up, Report

Egyptian StreetsJuly 5, 2020