Lingering Crisis in Cairo Dims Egypt's Economic Outlook
The political conflict between President Mohamed Morsi and his opponents threatens to do further damage to Egypt’s pivotal tourism industry, drag down already-depleted foreign-exchange reserves and increase the country’s painfully-high inflation rate north of 8%.Egypt is living off of foreign aid at this point. If the nation does anything to jeopordize foreign support, they will run out of currency reserves and be unable to import food.
.......While Egypt’s foreign reserves totaled $36 billion in December 2010, they plummeted as low as $13.5 billion in March 2013. Reserves rose to $16 billion in May thanks to a recent cash injection of $3 billion from Qatar and a $2 billion interest-free loan from Libya.
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