Egypt faces no currency crisis or gas supply risks amid regional war: Madbouly

2026-03-03 - 16:34

Egypt has no foreign currency crisis and will maintain stable electricity and gas supplies to factories despite the ongoing regional conflict, Prime Minister Mostafa Madbouly said on Tuesday. He asserted that the state has secured its strategic energy and commodity needs for several months despite regional military developments. Speaking at an extensive press conference at the government headquarters in the New Administrative Capital, Madbouly addressed the repercussions of recent regional escalations, specifically citing US-Israeli operations in Iran. He was joined by Minister of Electricity and Renewable Energy Mahmoud Esmat, Minister of Finance Ahmed Kouchouk, Minister of Supply and Internal Trade Sherif Farouk, Minister of Petroleum and Mineral Resources Karim Badawi, and Minister of State for Information Diaa Rashwan. “There will be no power outages or cessation of gas supplies to factories,” Madbouly said, explaining that the government had been preparing for various scenarios for months. He noted that the state has secured gas shipments at preferential prices through contracts with international companies and sovereign partners to ensure energy stability. Madbouly stated that Egypt faces “no crisis in providing foreign currency” and has no obstacles to importing any commodities in any quantity. He added that the Central Bank of Egypt continues to operate a flexible exchange rate system based on supply and demand. While acknowledging a slight strengthening of the US dollar against global currencies due to the war, he described this as an “exceptional circumstance” that would stabilise once the conflict ends. Moreovwer, Prime Minister warned that the closure of the Strait of Hormuz and disruptions to navigation in the Red Sea and Bab al-Mandab, alongside the targeting of regional oil facilities, pose significant challenges to global supply chains. He noted that while Egypt is not in the “direct circle” of conflict, it is an integral part of the region and is affected by the resulting volatility in energy prices and shipping costs. Regarding food security, Madbouly confirmed that the state has secured reserves of strategic goods—including wheat, sugar, oil, fodder, pasta, flour, meat, and poultry—for several months. He highlighted that the local wheat harvest season begins in April, with the state aiming to procure nearly 5m tons, up from 4m tons last year. To support this, the government has increased the procurement price per ardeb of wheat to a level “significantly higher than the global price” to incentivise farmers. The Prime Minister issued a stern warning against “monopolistic practices,” stating that the state possesses the legal and legislative mechanisms to deal firmly with any attempts to hide goods or manipulate prices. In the energy sector, Madbouly revealed that Egypt plans to drill more than 106 new exploratory wells this year in cooperation with international companies. He noted that the government has already paid a significant portion of dues to foreign partners to boost confidence and production. However, Madbouly cautioned that if the conflict is prolonged and global prices for oil—which he noted rose from $69 to over $84 per barrel recently—and shipping continue to climb, the state may be forced to take “exceptional temporary measures.” He recalled his previous stance that price increases would only be reconsidered in the event of a “major war,” a scenario the region is currently approaching. “We hope that the world will lean towards the voice of reason and pressure all parties to stop this war,” Madbouly concluded, reiterating that Egypt’s primary political objective remains containing the escalation and avoiding a wider regional conflict.