Difficulties in Wheat Payments in Egypt Due to Hard Currency Shortages

A Egyptian official and traders announced that Egypt is delaying payments for its large wheat purchases for periods extending to months at times, amid a shortage of hard currency in the country. Egyptian Minister of Supply Ali Moselhy told Reuters that the government agency responsible for purchasing grains is delaying the opening of letters of credit to pay for wheat imports in order to alleviate financial pressures caused by the shortage of foreign currency. Egypt is one of the largest wheat importers in the world, with its purchases largely aimed at providing heavily subsidized bread. Since the outbreak of the war in Ukraine, Egypt has increasingly relied on Russia for its wheat supply.