The International Monetary Fund (IMF) has approved a more than $3 billion loan allegedly to support Egypt’s ailing economy . But many experts note that the timing of this massive bailout is suspect because of Egypt’s recent moves to join the China- and Russia-aligned BRICS economic union.
In the past year, Egypt has been hit exceptionally hard by soaring oil and commodity prices resulting from global economic turmoil. Foreign portfolio investors have already pulled out around $22 billion from Egyptian debt markets. (Related: Egypt joins BRICS-owned New Development Bank, expresses interest in becoming full-fledged member of BRICS .) In response to the economic turmoil, Egypt devalued its currency in March and then again by around 18 percent in late October, causing the $400 billion economy to face the worst foreign-exchange crunch in over half a decade.
Egypt has asked the IMF to provide it with more support – on top of […]
Excerpt Sourced From: basedunderground.com
