Egypt Is About To Join Nigeria As The Second African Economy To Devalue Its Currency

Egypt

After Nigeria devalue the Naira, the world had thought Africa’s largest economy would be the only one taking such drastic step. However, Egypt is about to joine the league. The country is now considering the option of devaluing the Egpytian Pound to save its economy from imminent collapse.

Egypt’s currency reserves has fallen to a record low. Accroding to data compiled by Bloomberg, the country’s reserve can only cover three months of imports. The country has already sought the help of the International Monetary Fund, IMF to borrow out of its problem.

There are already shortage of US Dollars that has weakened the Pound.The country might have to follow the footsteps of Nigeria to go for a free float of the currency. For the country to get the support of the IMF, it will need to do the inevitable.

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