Thursday, November 3, 2016

Egypt Devalues Currency


This won't end well...and this time the nation has > 80M citizens.... the best the world can reasonably hope for at this point is substantial interest rate increases from the Fed.
Egypt may approach the International Monetary Fund within days to seal a $12 billion loan deal, central bank Governor Tarek Amer said, hours after taking the unprecedented step of floating the pound to attract investments and ease a dollar shortage hobbling the economy. 
Amer, speaking in a televised news conference on Thursday, said the central bank’s measures aim at restoring investor confidence by ending a black market for dollars. He touted the central bank’s ability to marshal more than $16 billion in financing from various sources to plug Egypt’s budget deficit in the fiscal year ending June 30.



4 comments:

Bob said...

Egyptian currency comes from the barrel of a gun.

Joe said...

Well one story mentioned the price of sugar possibly going up by 40%. Since Egypt is the fattest country in Africa, a major jump in sugar prices could only have positive effects... so at least one good thing might come out of it.

Joe said...
This comment has been removed by the author.
Matt Franko said...

Yes Joe iirc that said diabetes is running at 85% over there...

also it looks like they built residential on what should have remained agricultural...

they have to get their domestic ag production way up imo.... maybe they dont have the qualified people in ag as well as public finance systems as this article indicates...

ie "real constraints..." in this case brains....