Suez Cement says profit transfers hit by foreign currency crisis in Egypt

Suez Cement is struggling to transfer shareholder profits out of Egypt because of a foreign currency crisis, Reuters reports.

Egypt has been struggling to revive its economy since the uprising in 2011 that drove major sources of foreign currency such as foreign investors and tourists away.

Pressure for a devaluation of the pound has been building but the central bank has kept it fixed at 7.7301 pounds per dollar. The bank has been trying to conserve hard currency by prioritising its use for the imports of essential goods.

"The company has faced some challenges in transferring shareholder's profits abroad, which is estimated around EUR50m (US$54.8m), as a result of the foreign currency crisis in Egypt," Suez Cement Managing Director Bruno Carre said in a statement.

In an attempt to fight a currency black market, the central bank has also imposed restrictions on cash deposits, leaving businessmen powerless to access dollars for imports and resulting in goods piling up at ports.