Egypt central bank chief resigns amid deepening crisis

Wednesday August 17 2022

Egypt's central bank governor Tareq Amer unexpectedly resigned on August 17, 2022. PHOTO | REUTERS


Egypt's central bank governor Tareq Amer resigned on Wednesday amid a deepening economic crisis.

President Abdel Fattah al-Sisi accepted his resignation and appointed him presidential adviser, his office said. Mr Amer took up the post in 2015 and was due to exit next year at the end of a second term.

The government bonds suffered a sell-off on international debt markets after the news of the unexpected resignation, with falls between 0.6 and 1.7 cents on the US dollar and larger moves by many of Egypt's longer-dated bonds.

The Egyptian pound traded at 19.1 to the greenback, its second lowest exchange rate on record since its devaluation in 2016. Egypt devalued its currency again in March in the face of soaring inflation.

The world's largest wheat importer has been badly hit by the war between its two main suppliers -- Russia and Ukraine.

Egypt is also negotiating new financing from the International Monetary Fund as the public debt has hit 90 per cent of GDP.