What's Next For Egypt's Economy After A Currency Devaluation?
By Ulysses de la Torre:After solid gains at the beginning of the year for EGPT, PMNA, GULF and GAF, performance has foundered in no small part due to heightening fears of a currency devaluation in Egypt.It's been a few years, but there was a time not long ago when currency devaluations were much more frequent. Should Egypt indeed devalue the pound, reviewing this recent history raises certain questions for Egypt's immediate outlook that beg to be answered.Following are selected economic fundamentals of some countries in the year preceding a devaluation. Unlike my previous thoughts on this theme examining post-devaluation currency behavior, I'm lumping the LatAm data together with the Asia data so as to keep this article from being overrun by charts.
The calm before the storm
(click to enlarge images)
(Source: Economist Intelligence Unit)
Compared against some other notable currency devaluations of recent market history, Egypt is better off in someComplete Story »