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Egypt to switch to cash subsidies instead of bread

The Egyptian Ministry of Supply’s plan to shift from in-kind bread subsidies to cash subsidies triggered controversy amid fears of an increase in the rate of inflation.
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CAIRO — The Egyptian Ministry of Supply and Internal Trade has come up with a plan to replace the in-kind bread subsidy system with a cash bread subsidy system. This comes as part of the Egyptian government's attempt to fully convert to a cash subsidy system under the reform required by the International Monetary Fund. A cash bread subsidy system means floating the price of a loaf of bread, which, for several decades, has been subsidized by the government.

During a July 29 press conference, Egypt’s Minister of Supply Ali al-Muselhi said each citizen who qualifies for the subsidy receives five loaves of bread daily, at 5 piastres each (about a third of a US cent). The spokesman for the Supply Ministry, Mohammed Suwaid, said the production of one loaf of bread costs 57 piastres (about 3 US cents).

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