The news keeps getting worse for Egypt. Here’s a report that shows that since Gen. Abdel Fattah al-Sisi deposed the Muslim Brotherhood president last July, income from tourism has dropped more than half. Government figures earlier noted a significant drop in April and May compared to last year.
As Egypt’s president, al-Sisi’s main test will be fixing Egypt’s battered economy. But if you think the only way is up–it’s not. The nation could actually go bankrupt. A look at the foreign currency exchange rate shows that the central bank’s attempt to stabilize the Egyptian pound isn’t working–it’s at 7.15 to the dollar now. It was 6.90 last September, dropping from 6.96 at the time of the coup. The exchange rate is just another measure of confidence in Egypt’s economy, reflecting a continued lack of foreign investment–and tourism. Egypt is being kept afloat by huge amounts of aid from the Gulf. That can’t continue forever.
Mark in his computerized backyard recording studio