the crisis is primarily political, due to the expansion of the President’s powers, the army’s monopoly on economic activity, the absence of the role of Parliament, and the suppression of the media. He called for urgent political reform, followed by economic reform that includes raising production rates, reducing import expenses, increasing exports and stopping useless projects.
Successive Egyptian governments have been experimenting with the flotation solution, since the 1960s until the first quarter of 2023, and it has not succeeded in solving the exchange rate problem, according to economist, Mamdouh El-Wali, who believes that the main problem of the Egyptian economy is the fact that there is insufficient dollar resources that cannot cover the need for foreign currencies, which is expressed in Egypt’s merchandise trade balance with the countries of the world. This balance has been in deficit since the 1970s, which necessitates the need to bridge that gap by increasing production in the agricultural and industrial fields, achieving self-sufficiency and then achieving surpluses that can be exported . . .
In short: a purely political malaise. For such is the fate of all ‘unfree client states’.