Because of the rising costs of goods and gasoline, which have created an unavoidable burden in the present, citizens have been asking economic experts this question ever since the war began. The question at hand was why the Egyptian economy is affected in this manner and with such sensitivity as if the war is taking place.
The impact of the dollar exchange rate that saw a rise in recent times was due to the fact that all nations of the world are experiencing a strong fluctuation at this time, especially the most economically powerful nations like China and the United States of America, which has experienced increased inflation since the start of the war between Russia and Ukraine.
The Egyptian Central Bank then made a number of measures regarding its monetary policy, the first of which was to keep the price of lending and depositing for one night and the price of the Central Bank’s primary operations at a level of 11.25–12.25–11.75 percent.
Second: Maintaining a credit and discount price of 11.75 percent.
Third: Increasing from 14% to 18% the amount of cash reserves that banks are required to maintain for the Central Bank of Egypt.
The Egyptian pound continues to hold up in spite of all of the Monetary Policy Committee’s decisions.
What impact does the conflict between Russia and Ukraine have on a global scale?
This inquiry is crucial in establishing the connection between the effects of these events on the Egyptian economy and the global economy. As a result of these escalating events, all aspects of economic activity decreased, and at the same time, central banks abroad continued to restrain monetary policies by increasing rates of return and reducing asset purchase programmes to contain the rise.
Because of increased demand brought on by concerns of a potential global recession, their country’s inflation rates have somewhat reduced the prices of several essential commodities, such as oil, on a worldwide scale.
The conflict between Russia and Ukraine’s local impact:
As for the local level, in which we see the emissions of hope and resistance to the Egyptian economy for these repercussions, where the data issued by the Central Bank of Egypt indicated that the real domestic product recorded a growth rate of 3.
2.2% in the second quarter of 2022, registering a growth rate of 6.6% throughout the fiscal year 2021–2022, as opposed to the growth rate of the prior year, which was 3.3%.
How much will inflation be in the fourth quarter of 2022?
We examine the inflation rates published by the Central Bank in its most recent announcement from last September to provide an answer to this query. The annual rate of general inflation in the urbanisation rose to 14.
6% in August 2022 as opposed to the 13. 6% in July 2022.
Likewise, the annual average rate of ultra -inflation – which is calculated by excluding the group of fresh vegetables and fruits, as well as goods and services specified administratively at 16. 7 % in August 2022 compared to July 2022, which reached 15. 6 %..
Was the Egyptian economy affected by the Russian-Ukrainian war?
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