Egypt’s central bank governor resigns amid rising inflation, economic woes

Tarek Amer, Egypt’s central bank governor, has resigned his position as the country struggled to curb inflation generated by Russia’s war in Ukraine, high oil prices and a drop in tourism.

President Abdel Fattah El-Sisi accepted Mr Amer’s resignation and named him a presidential adviser. 

No official explanation has been given for Mr Amer’s resignation and Hassan Abdalla has been named as acting central bank governor.

Mr Amer was appointed as the central bank’s governor in November 2015. His tenure was renewed in 2019 and was to come to an end in November 2023.

Egypt’s tourism industry and economy, barely recovering from the lockdowns imposed due to the COVID-19 pandemic, was hit again by the war in Ukraine. The price of wheat and other grains hiked, along with the price of fuel. 

Egypt is the world’s largest wheat importer, sourcing around 80 per cent of the grain from the Black Sea region. 

Reuters reports that between February and the end of June, foreign investors had pulled 158.9 billion Egyptian pounds ($8.3 billion) out of Egyptian treasury bills and additional funds out of treasury bonds.

Last week, Egypt’s annual urban consumer inflation climbed to 13.6 per cent year-on-year in July from 13.2 per cent recorded in June.