Source: Carnegie Endowment
Author(s): Brendan Meighan
Original Link: https://carnegieendowment.org/sada/76567
In 2017, the Egyptian economy saw an influx of foreign currency following the implementation of a foreign exchange liberalization in conjunction with a series of structural reforms and an IMF loan package. The hard currency shortage, which had slowly ground the economy to a halt, was finally over. However, after eighteen months of turbulent economic changes, foreign investors have shown remarkably little appetite for long-term investment in the Egyptian economy. Over the course of 2017, the government touted the central bank’s rapidly increasing foreign exchange reserve levels and broadcasted new debt sales to much fanfare. Despite the big talk from the government, investment in rapidly maturing government securities is no indication of long term financial stability and security, as this money can exit the economy almost as quickly as it entered.
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