Another country’s currency is falling apart! This time it’s not England but Egypt pgd-426

Another country’s currency is falling apart! This is not British but the news with Egypt, according to foreign media reports, now the attention of people are concerned about, but also a pound is Egyptian pounds appear "completely" collapse. Although the official Egyptian pounds to us dollar exchange rate is $1 for 8.8 Egyptian pounds, but on the black market, the pound dollar exchange rate fell to $1 for 16.11 pounds, which hit a new record, also let the Egyptian pounds over the past month fell to 19%, let the Egyptian Pound since March start since the devaluation now fell more than 40%. Figure: Egyptian Pound black market rate and the official rate according to Bloomberg News reported that, as the third largest economy in Africa, Egypt will be in within two months from the end of the International Monetary Fund (IMF) $12 billion bailout. According to Egyptian Prime Minister Sheriff? Ishmael (Sherif Ismail) said, with the increase of the pressure after losing aid, Egypt only attracting foreign investment and stimulate economic growth through the depreciation of their currencies. Since Cecilia (Sisi) general overthrew the Muslim Brotherhood in Egypt’s ruling after Egypt’s economy has been hobbled in. Businessmen are fed up with the economic situation in egypt. They ignore the government’s restrictions on speech and continue to question the voice of the government. Due to the restrictions on the exchange of dollars, businessmen missed the deadline for delivery of a number of projects, the loss of the Egyptian market, and abandoned the business expansion plan. What will be the economic assistance to Egypt’s domestic economy? The current dilemma in Egypt’s economy is partly due to the Muslim brotherhood. For the brotherhood, one thing they are best at: like the spread of wildfires will take away the country’s foreign exchange reserves. There is no doubt that Cecilia government is firmly grasp their own limited foreign exchange reserves. In March this year, the Zerohedge website wrote that save Egyptian pounds and eliminate the only reliable way of Egypt domestic shortage of dollars, is the establishment of a currency board, the implementation of this system (also known as the currency board system, is a fixed exchange rate system). The currency board is able to determine the number of Egyptian pounds allowed to circulate in accordance with the free market mechanism. So what is it for? In this system, a monetary authority (BMA) issued banknotes and coins can be converted into a foreign currency at a fixed exchange rate anchor. This system will hold as reserves, low risk, interest, to anchor foreign currency denominated bonds. Reserves are determined by the law, equal to or slightly greater than their monetary liabilities. This system can generate interest from the reserve and the difference between the cost of debt to maintain profits. This system is not monetary discretion, can not participate in the monetary guarantee ready to issue. This system operation is passive and automatic. The only function of per system is at a fixed exchange rate to the issuance of domestic currency into foreign currency anchor. As a result, the circulation of domestic currency will depend only on market forces, that is, the demand for domestic currency. In history there have been many successful per system. Speaking from the design, this system will not be destroyed. Even Keynes’s design should be in the Civil War相关的主题文章: