• 3 days The EU Begins Backtracking On China Trade
  • 4 days Americans Are Sick Of Unfair Taxation
  • 6 days No Jab, No Job: The New Hardline Policy of U.S. Employers
  • 9 days What’s Included In Biden’s $6 Trillion Economic Plan?
  • 9 days The “Great Car Comeback” Brightens Oil Demand Outlook
  • 10 days The 3 Most Profitable Covid-19 Vaccine Stocks
  • 12 days Beijing Launches Digital Currency To Break AliPay-WeChat Duopoly
  • 13 days The New Economic World Order After Covid-19
  • 17 days 3 Signals To Watch For A Stock Market Correction
  • 19 days Netflix Earnings Red Alert: Subscriptions Could Underwhelm
  • 20 days Wall Street Banks Are Back
  • 21 days Elon Musk’s SpaceX Scores Big Win Over Jeff Bezos’ Blue Origin
  • 22 days Which Country Is The World’s Largest Investor In Batteries?
  • 23 days Are Bitcoin’s Environmental Risks Overblown?
  • 23 days Why The Gold Rush Ran Out Of Steam
  • 26 days Coinbase IPO Explodes, But Fails To Keep Its Momentum
  • 26 days China Slaps Alibaba With Record $2.75B Antitrust Fine
  • 28 days The Pandemic Has Culled The Middle Class
  • 29 days Legacy Automakers See Massive Spike In Sales
  • 30 days Tesla's Biggest Competitor Is Going Cobalt-Free
Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

  1. Home
  2. Markets
  3. Other

Dollar Crisis in Egypt; Egyptian Pound Crashes on Black Market; Another Devaluation Likely

A collapse in the Egyptian pound is underway. The official pegged price says one us dollar buys 8.78 Egyptian pounds. The street price says one dollar buys 13 Egyptian pounds.

Egyptian Pound  versus US Dollar

Please consider Dollar Crisis Casts Shadow on Auto Sales in Egypt.

The automotive market in Egypt has been experiencing an unprecedented wave of price hikes due to a dollar crisis amid anticipation by analysts that the Egyptian pound would be further devaluated by the Central Bank.

Fluctuations in the exchange rate have cast shadow on the import sector, threatening a potential stagnation in the car market, as an acute hard currency shortage hampers trade in the import-dependent country.

"We closed our store over the past five days," said Kareem Hussein, sales manager at Stars Auto store in downtown Cairo.

"The increase of the dollar's exchange rate against the local currency caused stagnation in the sales and made the clients reluctant to conclude any deal," he added.

The Egyptian pound weakened to a shocking rate of 13 against the U.S. dollar on the black market on Tuesday, at least 42 percent weaker than the Central Bank's official rate of 8.78.

On Friday, the pound was trading at around 11 per dollar on the black market after a security crackdown had been launched on many exchange offices on Wednesday and Thursday.

The official banking system has been suffering from lack of "dollar resources" since the 2011 popular uprising, which led to the reluctance of foreign tourists and investments, the two main sources of hard currency.

Auto sales have declined by nearly 50 percent in July due to the unprecedented price hikes, Hussein said. Some 10 percent of the clients have withdrawn their deposits last week, he pointed out. "We live in a nightmare due to the dollar crisis," he lamented.

The devaluation of pound has caused tremendous losses in the car sector and forced the merchants to increase the prices by 32 percent and made them looked like "exploiters."


Not Enough Dollars

We see the same story once again: "There are not enough dollars to go around." Mercy! Get out the printing presses.

 

Back to homepage

Leave a comment

Leave a comment