Sink or Swim: Egypt’s Anticipated Currency Float

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

Original Link: https://timep.org/commentary/sink-or-swim-egypts-anticipated-currency-float/

Tarek Amer, the governor of the Central Bank of Egypt (CBE), announced in July that Egypt’s longstanding policy of defending the Egyptian pound (LE) against devaluation had been a “grave error.” The strategy had slowly whittled away Egypt’s foreign reserves to no discernible benefit to the economy, causing shortages of dollars in the formal economy and a host of related problems. Some form of devaluation was among the reforms demanded in exchange for a loan from the International Monetary Fund, the preliminary agreement for which was reached in September…

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