General Motors (GM) Egypt has halted its operations in Cairo due to ongoing currency concerns, according to a report by UK news agency Reuters.

A company source is quoted as saying the ongoing currency situation has meant GM has been unable to free up imports being held up in customs.

MEED contacted GM Egypt and the firm refused to comment on the reports.

Import industries have been under pressure in Egypt since 2011, as political instability over the past five years has continued to deter tourists and foreign investors alike.

Egypt’s central bank has applied a protectionist policy in an attempt to protect the country’s depleting foreign reserves, which sit at $16.4bn. Despite this, the authorities have failed to protect import-dependent industries, which have found that a rationing of dollars has made importing products difficult.

Earlier this month, the central bank increased the amount of US dollars local companies can deposit with banks to $250,000 a month, from the previous cap of $50,000. Although the central bank’s actions aim to increase the availability of dollars to local lenders, it will not be sufficient to ease the increasing liquidity pressures of foreign currencies that Egyptian banks face.

“New dollar deposit limits [are] still below the demanded amounts necessary to finance imports,” said US ratings agency Moody’s Investors Service in a sector comment published on 1 February.