Posted on 11/03/2016 7:52:56 PM PDT by nickcarraway
Egypt devalued its currency by 48 percent on Thursday and announced the pound would be allowed to float - measures that meet a key demand by the International Monetary Fund in exchange for a $12 billion loan over three years to overhaul the country's ailing economy.
The devaluation pegged the Egyptian pound at 13 to the dollar, up from nearly nine on the official market. A Central Bank auction of dollars will be held later Thursday, allowing supply and demand to determine the value of the pound for the first time in decades.
The devaluation was virtually certain to cause a steep hike in prices, piling up pressure on President Abdel-Fattah el-Sissi's government to avoid a popular backlash against its handling of the economy.
(Excerpt) Read more at english.alarabiya.net ...
Removing Mubarak was not only morally reprehensible, but likely contributed to their ‘ailing’ economy.
I’ve never heard of a 48% devaluation in one fell swoop before. Pretty draconian. The situation must be dire.
It is an attempt by the globalists to start unrest. Take away 1/2 my money and I would riot too. (Not really, but you get my point)
Mexio used to devalue its peso quickly back in the 70’s and 80’s if I recall.
Can they even feed themselves, as a country? I thought that was one of their big problems.
A quick read of the article reveals the following phrases:
“official market”
“inflationary fallout”
“unofficial currency market”
“state subsidies”
“ration card holders”
“Regulations governing importers of non-essential goods”
“state owned companies”
Yep. I think I see the problem. Scads of government interventions in the marketplace, no doubt to achieve fairness and other praiseworthy goals, which have acted as hidden taxes on the productive sector of the economy.
Economics is hard.
Correct. Among other things, Egypt is the world’s largest importer of wheat.
If you do a web search for “Egypt food imports” you can find all sorts of info., all of it depressing. The basic problem of too many people for not enough arable (or developed to be arable) land is compounded by internal strife and heavy government intervention in the economy.
Thanks for confirming.
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