Egypt's Currency Crisis!

Egypt allowed its pound to tumble to a new low this week as the country struggles with a foreign currency crisis that is hurting businesses.

The slump in the currency comes after Egypt agreed to move to a flexible currency regime as part of an IMF $3bn bailout intended to help relieve its foreign currency shortage.

Since the central bank said it would move to a flexible currency rate in October, the pound has lost a third of its value as it has allowed it to devalue in phases. Analysts warn that it has further to fall until supply-demand equilibrium is restored to the foreign exchange market.

The weakness of the Egyptian pound is adding to the pain of millions of Egyptians as it fuels inflationary pressure.

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[AbdulRWatches]

As an Egyptian, I saw our currency go from 0.33 USD to 0.03 USD in the span of 30 years. It is scary the amount of miss management and miss allocation from resources. Thanks Patrick for the eye opening video.

[ddhurry]

Glad there is finally a week where Patrick doesn't need to savagely take down a bunch of crypto-bro fraudsters

[PoliteAF]

Your coverage is better than most of the global journalism and all of the financial journalism I have ever seen.

[mohamedfahmy]

As an egyptian follower of you, you know your country is in big trouble when patrick makes a video about it.

[mahmoudsohyon]

Very impressive summary of the situation.
- letting the army lead finances
-closing down the private sector
-putting to much money in mega projects at once
- corruption in police that reflects on tourism. Ex: paying extra fees to let your cameras inside the country even if you have a pre made agreement with the government. Scammers next to touristic places
perfect equation for economic disaster

[robertcarter]

Living in Alexandria Egypt here. The past year has been stressful seeing prices skyrocket and dollars becoming more scarce. Never thought I'd see bread be more than 1 pound but it's 1.50 now and the loaves are smaller. 50% increase for less food. God help the world

[marcomclaurin]

I saw the pyramids of Giza with my own eyes and like Egypt's economic problems they were a great deal larger than one might imagine

[newfaction]

i have been to egypt twice saw the pyramids of giza with my eyes, rode and galloped on the camels with desert dunes spreading to the panorama, egypt was one the first civilization and super power . i have best wishes and i really hope things get better, historically egypt as triumph over alot of hurdles no matter how big or small .
love from Nigeria .

[Scriptease]

I was in Egypt last October it's crazy that then it was 20 pounds per euro and now its 30 thats 50% more in just a few months

[Eric_Dennis]

Inflation/recession is producing a slew of problems throughout the world, including food shortages, diesel and heating fuel shortages, and housing prices and financial market crash. This global collapse might end up being a part of us for a very long time. With inflation currently at about 9%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.

[falastinefreedom]

Hello from Egypt —

Not to mention the salaries here in Egypt are nothing near livable in the least unless you are being paid in USD (thus being that you most likely are a foreigner). Prices are sky rocketing and salaries remain the same. For a visual: to live an “okay” life you must be getting paid at least 15k EGP (around $500 USD per month) (give or take). Today’s average salary is around 4.5k (less than $200 USD per month) with many families bringing in even less than that monthly and you’re expected to feed your entire family with these amounts.

The majority of Egypt is just trying to survive and now they are making that even difficult.

I fear that Egypt will reach a point where Egyptians aren’t common and it will be a country filled with foreigners living very well due to the exchange rate being massive. Please everyone pray for us. It’s really so bad. يا رب

[aslandus]

There's definitely a tragic irony in the Classical era's breadbasket of the Mediterranean becoming an impoverished grain importer...

[Pennybrookeify]

I needed a new Patrick video. Hope you’re well, Sir.

[MichaelLaFrance]

Egypt didn't need the pandemic to destroy their tourism industry, they do a good job of that all on their own. The country is noted for treating tourists terribly and making tourism difficult and dangerous. Tourists need to be prepared to pay bribes daily, for simple things like not having their cameras and phones seized by government officials. Very few nations in the world are simultaneously dependent on tourism revenue while doing their best to chase that revenue away.

[osagyefoghanaba]

Please analyse Ghana defaulting on its sovereign bonds as well as the Cedis being the worst performing currency. Thank you for your excellent work.

[t.t]

I know it's not nearly the biggest problem or the focus of the video, but I'm really sad to hear how dependent Egypt is on food imports.
I'm thinking of Egypt's role in the Roman Empire in comparison.

[nexus]

Hello Mr. Boyle. Egyptian here. I just want to say that your explanation is spot on. The situation here in Egypt is dire, and getting worse by the day.

[controlledchaos]

When P. Biddy throws the exclamation point in the title and rocks the drippy tie flex, you know it's hot fire

[alexattia]

This is an excellent summary of Egypt's economics in less than 23 minutes. Excellent Analysis!!!

[nrpbrown]

You make learning financial problems somehow engaging.