The Ministry of Supply has increased its allocation to food commodity subsidies in an attempt to outpace the current inflation rate caused by the Egyptian pound’s devaluation.

The ministry’s decision comes as part of a governmental plan to ease the economic burden on citizens, according to a source at the ministry.

The value of the US dollar against the Egyptian pound appreciated to EGP 11 in the parallel market on Thursday, driven by high demand from importers and the erosion of foreign currency holdings, which have followed receding direct foreign investments, tourism revenues, exports, and remittances.

The Egyptian government has issued about 20m subsidies cards, which provide food commodities to 80 million citizens across the republic, according to data from the Ministry of Supply.

“The value of subsidy allocations will increase by 15% next month,” Minister of Supply Khaled Hanafy said on Sunday, in a televised interview.

To circumvent the current pressures on food commodities, the government will pursue two measures, according to a source in the Egyptian cabinet. In the first instance, the Ministry of Supply will offset inflationary pressures by allocating additional funds to the subsidy programme. In the second instance, Armed Forces will sell food commodities to citizens from mobile outlets at prices 50% lower than the usual market value.

The government’s move came a few hours after the president’s Sunday speech commemorating Sinai Liberation Day. Al-Sisi directed the government to increase subsidies to match the price hikes caused by the fluctuating price of the dollar against the pound.

Dr. / Khaled Hanafy, Minister of Supply and internal trade also witnessed the signing of protocols between Internal Trade Development Authority the development and a number of investors for establishing commercial chains, modern logistics centers and markets in a number of governorates.

the signing was also attended by Mr. / Ahmed AlWakil  Chairman of the General Federation of Chambers of Commerce and Dr. Alaa Ezz, Secretary General of the Federation and Yasser Abbas, Vice President of Internal Trade Development Authority and Atef Jacob chairman of Consumer Protection Agency.