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Replying to Avatar Lyn Alden

The official (basically pegged) Egyptian pound to dollar exchange rate is currently 31-to-1, but on the black market it's about double that.

People naturally try to arbitrage that difference, and so the country has to start enforcing capital controls in order to reduce the ways that the fake exchange rate can be arbitraged.

A vicious cycle that inevitably leads to major devaluation.

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Paul 1y ago

Do you think capital controls will backfire for the state like in Nigeria?

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elsat 1y ago

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