In a recent development that highlights Egypt’s ongoing economic challenges, the Ministry of Education has issued a directive prohibiting the collection of tuition fees in foreign currencies for Egyptian students in private and international schools amid a severe economic crisis and the scarcity of foreign currencies in the country. However, some private and international schools continue to demand payments in US dollars.
Parents struggling
Nour, a parent whose son attends an international high school in Egypt, shared her ordeal with the Arab World News Agency (AWP). Despite the ministry’s decision, her son’s school refused to accept fees in Egyptian pounds or facilitate dollar transactions through official banking channels. This forced Nour to resort to the black market to acquire approximately $5,000 for the school fees, a move fraught with legal risks and financial uncertainty.
“I was afraid as I was going to the currency dealer. If the police arrested us, there would be a case… and the banks would not agree to provide us with dollars,” Nour explained.
In response to these challenges, Nour and other parents plan to file complaints with the Ministry of Education against the insistence of school administrations on foreign currency payments.
Ministry’s stance and exceptions
The ministry’s decision aims to ease the financial burden on parents and curb illegal market practices. However, it does not apply to all international schools. Ahmed Hanafi, Undersecretary of the Ministry, clarified that schools employing foreign teachers paid in dollars are exempt from this ruling.
“Paying fees in foreign currencies is subject to an agreement between parents and the school, and this also applies to international university branches,” Hanafi stated.
Private school owners’ commitment
Ahmed al-Khatib, a Senate member and Secretary-General of the Association of Private and Language School Owners, confirmed that private schools are committed to dealing in Egyptian pounds, aligning with the ministry’s decision. He emphasized the need for coordination with banks to provide foreign currencies for schools that require them, ensuring minimal impact on the parallel market.
Looking ahead
As Egypt navigates through these economic challenges, the Ministry of Education’s decision is a step towards stabilizing the education sector’s financial practices. However, the implementation of this policy and its impact on international schools employing foreign staff remains a subject of ongoing discussion and adjustment.
Economic crisis and market confusion
Egypt’s economy is reeling from the impact of the Russian-Ukrainian war, extensive borrowing, and reduced revenues from the Suez Canal and remittances. The official exchange rate of the Egyptian pound against the dollar has been stable at about 30.9 pounds, but the rate in the parallel market soared above 70 pounds last month, exacerbating the crisis.
Source: Al Arabiya