Egypt: The Governor of the Central Bank resigns and cabinet reshuffle amid rising inflation

Tarek Amer had held the position of Governor since November 27, 2015 (mandate renewed once on November 26, 2019). Under Presidential Decree No. 64 of 2001, the Governor of the Central Bank of Egypt is appointed by decree of the President of the Republic, on the proposal of the Prime Minister, for a renewable term of four years.

A cabinet reshuffle also took place on August 13. Of the 34 members of the government, 13 new ministers have been appointed. 

In the economic and commercial sphere, the following appointments should be highlighted: Ahmed Samir Saleh, Chairman of the Economic Affairs Committee at the House of Representatives, is appointed Minister of Industry and Trade (replaces Nevine Gamea), Mahmoud Mostafa Esmat , former chairman of the Egyptian Holding Company for Airport and Air Navigation (EHCAAN), is appointed Minister of the Public Sector (replaces Hisham Tewfick), Major General Mohamed Abbas Hashem, Chief of Staff of the Army of air, is appointed Minister of Civil Aviation (replacing Mohamed Enaba), Pr. Atef Nabhan Sweilan, Professor of Water Resources Management at the German RWTH University of Aachen, is appointed Minister of Irrigation and water resources (replaces Mohammed Abdel-Aty).

According to data published by the Central Bank of Egypt, urban inflation rose by 13.6% year-on-year in July, compared to 13.1% in June. It thus reached its highest level since May 2019. Consumer prices rose for the eighth consecutive month, partly due to tensions on world markets, particularly in raw materials, and the devaluation of the Egyptian pound. 

Food prices rose very slowly (0.6% y/y) and less rapidly than the previous month (5.3%). Inflation thus remains outside the upper range of the Central Bank’s target set at 7% (±2%).

Source : Embassy of France in Lebanon