The real source of Egypt’s dollar crisis is scarcity. Devaluation isn’t enough.

Source: The Tahrir Institute For Middle East Policy
Author(s): Timothy E. Kaldas

Original Link: https://timep.org/commentary/the-real-source-of-egypts-dollar-crisis-is-scarcity-devaluation-isnt-enough/

The Central Bank of Egypt (CBE) finally bit the bullet and facilitated a substantial devaluation of the Egyptian pound. The official price of the dollar has risen 14 percent this week from 7.83 Egyptian pounds (LE) to 8.95. The necessity of a devaluation has been widely understood for quite some time, as I explained just a week before the government announced the policy shift…

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