Conflict in Ukraine affects commodity prices, says Egypt's Finance Minister

Dr. Mohamed Maait, Egypt's Minister of Finance, spoke with the Planning and Budget Committee of the Egyptian Parliament on Wednesday on the difficulties facing the national and regional economies.

Maait emphasized the intricacy of these issues and the strain they place on citizens, citing issues like exchange rates, availability of products and services, high costs, and inflation as examples.

The minister also emphasized that Egypt's economy must expand in order to meet the requirements of its people and that the country's budget is influenced by both global and regional conditions.

He acknowledged the strain on the government's finances brought on by global inflation, which has raised interest rates everywhere, including in Egypt, and by exchange rate fluctuations, which add even more strain.

"We are torn between two things. First, as state citizens, we want people to see and experience the state's growth and development. Second, it is our duty to advance the national interest, added Maait.

Commodity prices have also been impacted by the ongoing conflict between Russia and Ukraine, with the price of a tonne of wheat reaching $340 as opposed to a reasonable price of $150 to $200 under normal circumstances. Even if price rises were to occur normally, they would typically be no more than $20.

Despite these challenges, Maait remains optimistic, stressing that the government will continue to work towards supporting economic growth and stability in the country.

He reiterated that the government's efforts are aimed at improving the lives of citizens and ensuring their access to essential goods and services.

Egypt's economy has shown resilience in recent years, with significant reforms taking place to improve the business environment, reduce bureaucracy, and encourage foreign investment.

In addition, Egypt's growing population and emerging middle class present opportunities for increased economic growth and prosperity.