2013-07-03

Can Egypt Recover? Will EGPT Bottom?

I've been looking for Egypt to collapse by the time this cycle of social mood and revolution completes. With dwindling foreign reserves, there's going to be a currency crisis even if the nation is able to return to some form of political stability.

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%.

.......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.
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.

No comments:

Post a Comment