Egypt said Sunday its annual inflation rate surged past 12% in March, up from 10% in February, largely because of Russia’s war in Ukraine, which has strained global markets and sent oil prices to record highs, the Associated Press reported. Data released by the Central Agency for Mobilization and Statistics shows price hikes across many sectors, from fuel, electricity and food items to housing, medical services and entertainment. The figures cover the period from April 1, 2021, to March 30, 2022.
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Lebanon and the International Monetary Fund on Thursday reached a tentative agreement on comprehensive economic policies for the crisis-hit country that could eventually pave the way for some relief, unlocking billions of dollars in loans, the Associated Press reported. The four-year agreement, which is subject to approval by IMF management and executive board, was announced by Lebanese Prime Minister Najib Mikati after a meeting with IMF delegates in Beirut. He said Lebanon promised the IMF that Beirut would implement wide-ranging reforms in the small nation notorious for corruption.
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An exodus of foreign workers from Saudi Arabia started to reverse after a year and a half as the economy recovers from the pandemic and oil prices rally, Bloomberg News reported. The private sector added more than 250,000 jobs for non-Saudis, according to fourth-quarter data released on Wednesday by the kingdom’s General Authority for Statistics. Citizens also benefited, with more than 83,000 jobs added for Saudis in the private sector and nearly 24,000 in government. Unemployment among nationals dropped to 11%, the lowest level since 2009.
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Lebanon may be closer than ever to breaking a two-year deadlock in talks with the International Monetary Fund, a senior official said, a step that could help draw a line under one of the world’s worst financial crises in over a century, Bloomberg News reported. The economy is in the grip of hyperinflation with the currency in freefall after the government defaulted on over $30 billion in international debt.
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Authorities in three European countries have frozen more than $130 million in assets linked to an investigation into money laundering in Lebanon, a European Union agency said Monday, the Associated Press reported. The measures taken by officials in France, Germany and Luxembourg come as Lebanon grapples with a devastating economic crisis and coincide with domestic and European investigations of its longtime central bank governor, Riad Salameh.
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A delegation from the International Monetary Fund will start talks in Lebanon on March 29, Prime Minister Najib Mikati said on Saturday, expressing hope of a deal in the coming weeks, Reuters reported. "Next Tuesday they will start their mission in Lebanon," he told reporters on the sidelines of the Doha Forum in Qatar. "Hopefully ... by the end of two weeks we will see the light," Mikati said. The Lebanese pound has lost more than 90% of its value since 2019, when the financial system collapsed, plunging the majority of Lebanese into poverty, according to UN agencies.
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The Egyptian pound slipped further against the dollar on Wednesday, after Egypt’s Central Bank raised its main interest rate and devalued the currency by 14%, the Associated Press reported. The moves by the Central Bank of Egypt were meant to combat inflationary waves triggered by the coronavirus pandemic and Russia’s war in Ukraine, which hiked oil prices to record highs. Banks were selling the U.S. currency at more than 18.5 pounds while buying it at over 18.45. By mid-day Wednesday, it was sold at 18.42 pounds and bought at 18.32.
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When a Lebanese bank told Aref Yassin it had closed accounts worth $20 million belonging to the professional syndicate he heads and issued a cheque for the balance that was worth a fifth of its face value, he took the matter to court, Reuters reported. The money, saved from engineers' subscriptions and deposited at Fransabank, was earmarked for healthcare and pensions covered by the syndicate for about 100,000 people who now face losing a lifeline in a country in the third year of an economic meltdown.
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Mexican Foreign Minister Marcelo Ebrard and his Saudi Arabian counterpart on Wednesday agreed to strengthen bilateral economic relations on the first day of the diplomat's 10-day tour of the Middle East and India, Mexico's government said, Reuters reported. Ebrard and Saudi Foreign Minister Prince Faisal bin Farhan Al Saud discussed investing in tourism and innovation, highlighting the need for a direct air route between Mexico and Saudi Arabia, the foreign ministry said in a statement.
Tunisia's president said on Monday there would be a national dialogue about the country's political system as he moves to rewrite the constitution after establishing one-man rule, but he gave no details on how it would take place, Reuters reported. President Kais Saied has already held an online consultation to canvas public opinion about the new constitution, and has promised to name a panel of lawyers to draft it and put it to a referendum in July.