Egypt just massively devalued its currency — here’s what happens next

7 Nov 2016   Egypt

Egypt’s central bank floated the pound on Thursday in an attempt to stabilize its economy, which has been hampered by a shortage of dollars. The currency was initially devalued by 32.3% to about 13 pounds per dollar, down from the previous peg of 8.8 per dollar, which had been in place since March. It has since tumbled further, and is now down by about 50%. At the same time, the central bank also hiked rates by 300 basis points in an attempt to curtail the inflation that’s likely to follow the weaker exchange rate. The devaluation of the pound was one of the key demands by the International Monetary Fund in order for Egypt to receive a loan of $12 billion over three years. The IMF has yet to officially ratify the loan, but it is seen as crucial in helping to stabilize the country’s economy. As for what […]

Tags:

Comments are closed.