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| Africa North | |
| Brace for a devaluation of the Egyptian pound, say economists | |
| 2016-02-15 | |
Egypt will allow a sharp devaluation of its currency in the first half of this year as it has run out of options in the midst of an escalating foreign currency shortage crisis that has slowed economic activity, according to bankers and economists surveyed by Ahram Online. Since the January 2011 mass uprising that overthrew Hosni Mubarak, the Central Bank of Egypt (CBE) has propped up the Egyptian pound, which was officially traded at 5.8 pounds to the US dollar at the time. Today, the Egyptian pound is changing hands at 8.7 to the US dollar on the black market according to traders surveyed by Reuters on Tuesday, compared to an official rate of 7.73. But with a collapsing tourism sector, falling Suez Canal toll revenues, lower-than-expected foreign direct investment, and stagnating export receipts, Egypt, which relies heavily on imported food and fuel, has come under increasing pressure to let its currency weaken. | |
| Posted by:trailing wife |