The Clap
Egyptian factories’ production capacity fell by 50% due to the foreign currency shortage.
What
The shortage of USD from official sources has limited factories’ production capacity. That’s because factories depend on imported raw materials and equipment, Moharam Helal, Chairman of the Egyptian Federation of Investment Association (EFIA) told Al Arabiya.
So What
This decline in production has decreased export rates, while the import bill increased. This contributed to the surge in inflation, according to Helal.
Some Context
Factories find it challenging to get foreign currency because banks demand importers to pay 120% of the imported goods’ value to access foreign currency, clarified Helal.
