Egyptian pound sinks to record low

[alp227]

Source: financial times

The Egyptian pound sank to a record low against the dollar on Sunday as the government sought to calm fears by announcing it would resume talks with the International Monetary Fund in January to secure a crucial $4.8bn loan.

The pound slid from 6.18 to 6.30 to the dollar on Sunday after the central bank held its first foreign currency auction as part of a new system introduced to slow down the depletion of the country’s reserves.

The measure followed a wave of panic buying of dollars by the public sparked by fears of an imminent devaluation of the Egyptian pound after political turmoil derailed a deal with the IMF.

Youssef Farouk, the manager of al-Masriya, a leading foreign exchange company, said he expected the pound to remain under pressure in the days to come. “I don’t expect it to climb up again. The fears which are causing people to seek dollars have not ended because there is still political tension.”

Read more: http://liveweb.archive.org/http://www.ft.com/cms/s/0/9b0bc1fc-529b-11e2-8e1b-00144feab49a.html

[bemildred]

1. I'm disappointed in Morsi, he's assertive, but he's not a smart politician.

He has pushed way too hard for this islamiscist authoritarian bullshit, and done way too little to settle things down. Egypt has big issues, the last thing it needs it to wallow in these divisive social/religious issues.

[MADem]

2. It's a sad time for the Egyptian economy and a sad time for women and

religious minorities in Egypt. It's not going to get any better under Morsi--he knows what side his bread is buttered on. I think Egypt will be in a bad way for awhile.