General Motors has temporarily suspended its operations and production in Egypt.
According to a source speaking to Reuters, the country’s currency crisis is to blame for the temporary hiatus. The African country, which relies on imports, has been experiencing an economic crisis since an uprising in 2011, causing political turmoil, thereby driving away tourists and foreign investors alike. Since then, dollar reserves have been cut in half to $16.4 billion.
“The entire sector has a currency crisis we can’t make a car without some of the parts. We stopped production temporarily as of yesterday until we can clear the imports held up in customs,” said the source.
Egypt’s central bank has been rationing dollars and keeping the pound artificially strong at 7.7301 per dollar during weekly dollar auctions.
“There is still some leeway with the government and the banks to solve the issue”, added Reuters’ source.
General Motors sells and assembles cars and trucks in the country under the Chevy brands, and accounts for roughly 25 percent of Egypt’s vehicles.