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Israeli media focuses on Egyptian economy

February 17, 2014 at 1:50 am

The Israeli media has launched a wave of negative reports on the Egyptian economy. Business newspaper Calcalist ran a lengthy report on Tuesday stating that anxiety about the economy in Egypt is getting worse day after day, especially after the Egyptian pound slipped sharply against the dollar.
Calcalist added that the Egyptian Central Bank’s plan to sell foreign exchange in order to increase the demand for its own currency is not sufficient because of the downturn in inward investment and the fall in exports.

Economic analyst Doron Peskin said that despite attempts to create calm on the part of the Egyptian government and President Morsi himself, foreign investors are pulling out due to the Egyptian pound’s decline. The Israeli paper noted that Egypt’s economy loses $130 million daily due to the popular protests, which “proves” claims by the leaders of the Opposition that the economy will collapse in six months as a result of the new president’s economic policies.

In an attempt to curb the pound’s decline, notes Calcalist, the Egyptian Central Bank announced the implementation of a new system for foreign currency so as to protect the foreign currency reserves; the bank has made several protective decisions recently, including selling foreign currency.