Intelligence Squared How the Egyptian Pound Hit an All-Time Low
Jan 27, 2023
Vivian Yee, Cairo Bureau Chief for The New York Times, and Gregg Carlstrom, Middle East correspondent for The Economist, delve into Egypt's severe economic crisis. They discuss how the Egyptian pound's historic drop and soaring inflation are affecting everyday life, turning essentials into luxuries. The conversation highlights the role of the military in the economy, the impact of global events like Ukraine’s war, and the skepticism surrounding the IMF's interventions. Will President El-Sisi find a viable solution, or is unrest looming on the horizon?
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Egyptian Pound Devaluation
- The Egyptian pound has significantly devalued, trading around 30 to the dollar.
- It lost half its value since 2022, with a 20% drop in January 2023 alone.
Rising Cost of Living
- Egyptians express frustration over rising supermarket prices, with some feeling their "blood boils."
- Inflation, driven by food prices, reached a record high of over 20%, impacting affordability.
Origins of the Crisis
- Egypt's economic crisis began in late 2021, worsened by Russia's invasion of Ukraine.
- Investors withdrew over $20 billion, creating a dollar shortage, partly due to concerns about Egypt's debt and overvalued currency.