More than 800,000 tons of wheat have accumulated in Egypt's ports due to a shortage of dollars, causing bread and meat prices to rise.

In the ports of Egypt, more than 800 thousand tons of wheat have accumulated due to currency problems, according to RIA Novosti, citing a statement by a member of Egypt's Industrial Union, Walid Diab.

The lack of dollars in the country prevents importers from receiving their goods.

“Currently, about 800-900 thousand tons of wheat have accumulated in Egypt's ports over the past three weeks. We hope that this cargo will be released from the port, but it is currently impossible due to a shortage of dollars,” Diab commented.

This situation has led to a decrease in supply in the domestic market and, consequently, to an increase in the prices of goods, including bread and pastries. The availability of products has decreased, but prices have gone up.

Delays in the supply of corn and soybeans have led to an increase in prices for animal feed. Prices for meat and poultry have also risen, and milling activities have decreased by 80%.

Representatives of the grain chamber have already sent official appeals to the government authorities requesting measures to solve this problem, however, the final decision on the distribution of dollars lies with the Central Bank.

“Earlier, the Central Bank took measures to relax restrictions, which allowed us to enter into contracts and deliver goods to the ports. Now, however, we need dollars to receive these shipments,” emphasized the chamber member.

In March 2020, Egypt's foreign reserves reached a historic high of $45 billion. However, due to the COVID-19 pandemic, they started to decline. The Central Bank of Egypt explained that it is using funds from foreign reserves to meet the demand for foreign currency in the Egyptian market, import strategic goods, and pay off the country's external debt.