Egypt resorts to drastic proposals to solve dollar crisis
Egyptians are at odds over how to solve the country's fiscal crisis, with parliament speaker Ali Abdul Aal calling for shutting down currency exchange companies.
The Egyptian economy has been suffering since the January 25 Revolution in 2011, in light of the US dollar supply shortage, which is controlling the Egyptian import market. Last year, Egypt's imports amounted to about $65 billion, underscoring its demand on foreign currency.
Before January 2011, Egypt’s economy relied on several key sources, most prominently tourism and foreign investment — two sectors currently in sharp decline.
The political circumstances resulted in a severe decline in the Egyptian pound compared to the US dollar. In January 2011, $1 was worth 5.818 Egyptian pounds. Today, however, $1 is officially worth 8.88 Egyptian pounds, while the estimated price on the black market ranges from 12 to 13 Egyptian pounds.
Egypt is trying to obtain US currency by borrowing it, as well as trying to control the US dollar on the Egyptian black market.
