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Egypt considers boosting strategic reserves amidst market volatility

Prime Minister’s directive sets stage for potential intervention in commodity prices

What: Egypt’s Prime Minister Moustafa Madbouly has ordered a review of plans to increase the country’s strategic reserves of essential goods by 20%, as revealed in a recent cabinet statement.

Why: This precautionary move is aimed at fortifying the nation’s supply of crucial commodities to counter potential market disruptions and stabilize prices of essential goods. These reserves would be imported and strategically released into the market during crises to mitigate price fluctuations.

Some Context: President Abdel Fattah El Sisi’s recent proposal to allocate USD 1-3 billion for importing essential commodities aligns with this initiative, emphasizing the government’s proactive stance in addressing price concerns.