Understanding the Egyptian Pound’s Volatility (for dummies)

Many of you have asked me to explain why the Egyptian pound has taken a turn for the worst as of late. Let me begin first by saying that the value of a country’s currency is a standard measure of its overall health. If an economy was a human body, the strength of its currency would be the equivalent to the strength of its heart. If blood circulation is too low, meaning the heart is not pumping enough, we are not exporting at a high enough level to sustain good health. Let me explain. A number of factors affect the valuation of any currency. A country has a balance of payments which reflects all the transactions between a country and the rest of the world. The current account on the balance o

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    © Khaled F. Sherif, 2020

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