Egypt, Cuba and Argentina’s fight against the economic crisis

In response to inflation and the decline in the purchasing power of the Egyptian pound in relation to the dollar, the inhabitants of Egypt are looking for a safe place to invest their assets, so they trade in gold, real estate and cars. The Egyptian authorities increased the aid agreement with the International Monetary Fund to stimulate the economy from USD 3 billion to USD 8-10 billion. They also agreed with the United Arab Emirates worth USD 35 billion for constructing a new city and the development of tourism on the Egyptian Mediterranean coast. Moreover, Egypt implemented the most significant interest rate increase in its history (by 600 basis points), allowing the Egyptian pound to weaken by more than 38% through devaluation.

The Cuban government has turned to the World Food Program for food aid, and so far, 144 tons of skimmed milk powder have arrived in Cuba. There is also a lack of wheat flour for baking bread and fuel for electricity production. Cuba, like Egypt, is struggling with a shortage of foreign currency, which prevents it from purchasing food on external markets.

In Argentina, the poverty rate at the beginning of this year reached 57%, and millions of people are struggling with triple-digit inflation and the sharp devaluation of the peso that occurred in December last year. Moreover, according to Agustin Salvi, a poverty researcher at Universidad Católica Argentina, “the country’s social security system is weakening.” At the same time, since President Javier Milei took office in December last year, Argentines have deposited more than $2.3 billion in local dollar-denominated bank accounts, reflecting optimism about government reforms.