The impact of the Gaza war on the Egyptian economy has been significant. The conflict has led to a loss of tourism, a reduction in Suez Canal revenues, and rising wheat prices. The Egyptian currency has also slipped against the US dollar. These economic challenges, coupled with mismanagement, have put pressure on the Egyptian economy. The International Monetary Fund (IMF) has provided a bailout loan to Egypt to help address these challenges. Additionally, the United Arab Emirates (UAE) has invested in a development project on Egypt's Mediterranean coast, which could provide some economic relief. However, many Egyptians are frustrated with the government's close security ties with Israel and the closed border crossing into Gaza. The IMF's austerity program, aimed at addressing Egypt's economic issues, has raised concerns about pushing struggling Egyptians into destitution. There is widespread public frustration at the inability of Arab states to alleviate Palestinian suffering, and Egyptians fear that uprisings could further destabilize the region. [17d81eb8]
Meanwhile, in Misrata, Libya, businesspeople and member companies of the Misrata Chamber of Commerce, Industry, and Agriculture are facing difficulties obtaining letters of bank credit. The funds allocated for these letters are still suspended in the banking system, despite the payment of the required fees. The Head of the Misrata Chamber of Commerce, Industry, and Agriculture, Fathi Al-Amin, has expressed concern about this issue and has addressed the Central Bank regarding the matter but has not received any official response. In response, members of the Misrata Chamber of Commerce, Industry, and Agriculture have demanded the opening of letters of bank credit and have threatened to escalate their actions if the closure persists. This could include a strike and the closure of shops and stores. The closure of the bank credits system is adding to the economic challenges faced by businesspeople in Misrata, exacerbating the already difficult situation. [3c320994] [17d81eb8]
In Yemen, a fight for control of the country's banks between Houthi rebels and the internationally recognized government is further worsening the already crippled economy. The Houthis and the government use different currency notes with different exchange rates and run rival central banks. This dispute over the banks is eroding the value of Yemen's currency, the riyal. Yemenis in Houthi-controlled areas have been unable to withdraw money from bank savings accounts, leading to protests. The fight for control could disrupt the import of food and basic commodities and the transfer of remittances. The internationally recognized government moved the central bank to Aden in 2016 and issued new banknotes, while the Houthis set up their own central bank in Sanaa and banned the use of the new money. The bills have different exchange rates, causing further confusion. The Aden-based central bank gave banks 60 days to relocate their headquarters to Aden and stop operating under Houthi policies, but no banks met the deadline. In retaliation, the Houthi-run central bank in Sanaa banned all dealings with 13 banks headquartered in Aden. Both sides are facing a cash crunch, and the Houthi government's new coins aren't recognized outside its territory. The U.S. designated the Houthis as a global terror group, which could make banks around the world reluctant to continue financial dealings with banks under Houthi control. The economy in Aden has also been hit hard due to Houthi attacks on oil ports. Depositors in Houthi-run areas have been unable to withdraw money from their accounts, and the central bank in Sanaa has informally stopped releasing funds from individual banks. The fight for control of the banks threatens to deepen poverty, worsen food insecurity and malnutrition, and increase reliance on humanitarian assistance. [3252c9dc] [70f1b54c]