VenturesNow

Egypt plans $2.6 billion for bread subsidies in new budget

Published

9 months ago

March 20, 2024

Egypt’s minister of finance, Mohamed Mait, said that the country’s 2024–2025 budget will include $2.66 billion for wheat subsidies and $3.13 billion for petroleum product subsidies.

According to Reuters, Egypt is a major global importer of wheat as well as other staple foods and petroleum. The nation is currently experiencing deficits in the balance of payments, a gaping budget, and foreign exchange shortages.

According to Mait, a total of $12.67 billion was set aside for social protection measures, with 134 billion Egyptian pounds going specifically towards food subsidies.

Out of Egypt’s overall population of 105 million, approximately 60 million people benefit from the country’s subsidy programme, which offers subsidised rates for goods including bread, rice, and sugar.

The finance minister went on to say that fluctuations in foreign exchange rates and an increase in the price of oil globally were the reasons behind the subsidising of petroleum resources.

In March, Egypt depreciated its pound to roughly 47 pounds per dollar. Key interest rates were also raised by the central bank by 600 basis points.

For 12 months, the value of Egypt’s currency is currently set at about 31 pounds to the dollar. By the next fiscal year, which begins on July 1st, its total spending will have reached 3.9 trillion pounds ($82.89b). It is anticipated that 2.6 trillion pounds will be made.

Related Topics:Bread Egypt Featured Subsidy

Click to comment

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”