44937
Another Egypt Devaluation Inevitable
World Economy

Another Egypt Devaluation Inevitable

As Egypt’s foreign currency shortage intensifies and the gap between official and unofficial currency rates widen, economists say another devaluation is inevitable this fiscal year, Reuters reported. Foreign currency inflows have been severely hit in import-dependent Egypt after a 2011 uprising drove away tourists and foreign investors, two major sources of hard currency.  The dollar shortage has stifled business activity and hit confidence in the Egyptian economy. Egypt devalued the pound by 13% in March in an effort to close the gap between the official and parallel rates but the move failed to boost dollar liquidity or close the gap. Reserves tumbled from $36 billion before the uprising to around $17.5 billion in May this year, and foreign currency reserves have been further drained this month as Egypt returned a $1 billion deposit to Qatar and paid $720 million in fees to the Paris Club. In May net foreign assets dropped to negative $9.4 billion, down from a surplus of $6.1 billion in the same month a year earlier.

 

Short URL : http://goo.gl/XoIXCz
  1. http://goo.gl/NrMc4W
  • http://goo.gl/1Izcbm
  • http://goo.gl/ynKqY9
  • http://goo.gl/QgCNgc
  • http://goo.gl/e3zX6S

You can also read ...

Bithumb Hacked, $32m in Cryptocurrency Stolen
Cryptocurrencies dropped after the second South Korean...
South Africa GDP Shrinks
South African gross domestic product shrank 2.2% in the first...
Saudi Arabia, which employs about two-thirds of its citizens, is chipping away at a budget deficit that ballooned to almost 16% of GDP after the oil shock of 2014, while FDI slumped more than 80% last year.
Show up, swipe in. The routine is familiar to office workers...
Washington in March imposed tariffs of 25% on steel and 10% on aluminum, in a move mainly aimed at curbing imports from China.
Russia said on Tuesday it would impose import duties on US...
Australian Telecom Co. to Axe 8,000 Jobs
Australia’s dominant telecommunications company Telstra...
Taxes in Italy Drive Economy Underground
Italy grew rapidly over the 20th century, and its black market...
South Korea to Grow 3 Percent
The Organization for Economic Cooperation and Development has...
World Shares Snap Five-Day Losing Streak
World stocks steadied near three-week lows on Wednesday and...

Trending

Googleplus