AP - Egypt's central bank stepped in Tuesday to halt a sharp fall in the country's currency, while the stock exchange outlined regulations aimed at thwarting potentially steep losses when it reopens next week as massive anti-government protests batter investor confidence.
REUTERS/Asmaa WaguihEgypt's central bank floated the pound on Thursday in an attempt to stabilize its economy, which has been hampered by a shortage of dollars.
The currency was initially devalued by 32.3% to about 13 pounds per dollar, down from the previous peg of 8.8 per dollar, which had been in place since March. It has since tumbled further, and is now down by about 50%.
I's hard not to laugh at the irony of recent central bank currency actions.
After complaining for years about the strength of the Real, the Brazilian central bank stepped up intervention actions hoping to stop a plunge in the currency.
Turkey now attempts to attract capital after taking measures for the past four years to stop the flow of money into the country.
In India, the central bank seeks to stop a plunge in the Rupee which is at a record low of record low 58.95 to the dollar.
Late on Friday Venezuela shocked the world when instead of reporting an update on the ailing health of its leader, as many expected it would, it announced the official devaluation of its currency, the Bolivar by nearly 50% against the dollar yet still well below the unofficial black market exchange rate.
The violence in Egypt following the military overthrow of former president Mohamed Morsi continues to escalate. Over 800 are dead according to official reports, thousands dead according to other reports.
The stock market, bond market and credit markets have all responded. Credit Default Swaps (CDS) soared to 810, placing Egypt in the top-10 of countries likely to default on sovereign bonds.
BRASILIA, Brazil (AP) — Brazilian President Dilma Rousseff spoke about her generation's struggles in battling a dictatorship during a prime-time speech meant to connect with the nation's youth who have energized widespread and at times violent anti-government protests.