![]() ![]() "For the population, up until the pandemic, there had been a marginal improvement in living standards," said David Butter, an Associate Fellow on London-based think tank Chatham House's Middle East and North Africa Programme. Many economists believe they will have to go much higher still, all of which will feed a problematic economic narrative for next year's presidential elections. The Egyptian pound now changes hands at more than 40 to the dollar on the streets, nearly 25% below the currency's official rate EGP= despite the repeated devaluations and interest rates jumping to 18.25%. ![]() And like that example, a lack of dollars in Cairo's local currency markets is biting the economy. The rating agency, which downgraded Egypt's credit rating again on Friday, highlights that only default-stricken Sri Lanka would need to pay more. Its debt-to-GDP ratio is fast approaching 100% and three major currency devaluations totalling 50% in little over a year means the interest payments on its debt alone - a large slab of which is borrowed in dollars, euros or yen - will soak up over half of the government's revenues next year according to Fitch. ![]()
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