General Motors (GM) Egypt will resume assembly operations at its plant in 6 October City on Sunday (14 February), according to a report by the British Broadcasting Corporation (BBC). The automaker has affirmed its willingness to continue its operations in Egypt.
Significance: Egypt is a key market for GM in the Middle East and Africa. It is the second largest market by volume for the automaker in the region after Saudi Arabia, according to IHS Automotive data. Earlier this week, GM temporarily suspended its assembly operations in Egypt because of its inability to source dollars amid the country's currency crisis. It was reported that the Egyptian pound fell heavily in black-market trading last Sunday (7 February), although trading continues to be relatively stable versus the US dollar in official markets. The Central Bank of Egypt may opt for a managed depreciation of the currency, rather than the current policy of devaluing it periodically without any real notice of the timing. This would help narrow the gap between the official and black-market rates, and ease pressure on the central bank's foreign reserves. As a result of the stoppage, we expect that total assembly will decrease by around 400 units this month
