Egypt in Talks with UAE for $400 Million Wheat Financing
Egypt in Talks with UAE on $400 Million Wheat Financing
Egypt is in talks with the United Arab Emirates for USD 400 million (EGP 12.31 billion) to finance the purchase of wheat, Egyptian Minister of Supply and Internal Trade Aly Moselhy told Bloomberg on July 20.
Moselhy did not indicate when action would be taken, but explained that the Abu Dhabi Development Fund would provide the funding through payments of EGP 100 million (USD 3.78 billion).
The move comes amid uncertainty and rising prices due to Russia’s withdrawal from the Black Sea grain export agreement that facilitated the supply of Ukrainian and Russian grain to world markets.
“We are not happy with Russia’s withdrawal from the UN grain export measure,” Moselhy told Bloomberg.
On June 9, the Egyptian cabinet rejected a Reuters report claiming that Egypt is delaying the opening of letters of credit for wheat purchases to ease foreign currency pressure.
The country is facing a shortage of foreign currency amid an economic crisis exacerbated by the war in Ukraine.
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