Egypt has been steadily releasing goods left stranded at ports this year due to insufficient foreign currency to cover letters of credit (L/Cs) to secure their release.

Goods worth US$4-5 billion are now being released from ports each month according to Egypt's finance minister, Mohamed Maait.

He says the Egyptian government has so far released US$23 billion worth of goods that were stranded at ports this year.

Stranded goods

Imported goods valued at US$10-15 billion were stranded at ports in the latter part of last year, largely due to shortages of the foreign currency required to secure their release from customs.

A US dollar shortage precipitated by the war in Ukraine has made it harder for importers to secure the liquidity required to cover L/Cs.

Cooperation with banks

As a result, vast quantities of goods, including production inputs valued at many billions of US dollars accumulated at Egyptian ports.

The government responded by formulating a plan in cooperation with the banking sector to accelerate the clearing of the ports with the aim of keeping the country's production processes functioning according to Maait.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.