Boskov, Tatjana (2019) Egypt Currency Crisis: Analysis of the Causes. IJIBM International Journal of Information, Business and Management, 11 (1). pp. 1-9. ISSN 2076-9202 (Print)/2218-046X (Online)
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Abstract
Currency crisis is a currency market disturbance where speculative foreign exchange strike leads to a
devaluation or comes to a point when the authorities sell their foreign exchange reserves or raise interest
rates to defend their exchange rate. Currency crises are usually defined in the context of the financial
crisis, including a ban and debt crisis (Claessens and Kose, 2013).
Considering the fact that Egypt is a small and open economy, it was hit by a sharp decline in food, energy
and other commodity prices in 2007/2008. Given that the middle group of Egyptian society spends about
45% of its income on food products, this brought economic policy under tough pressures and demanded a
quick response to mitigate the shock in order to maintain social and economic stability. Evaluation of
existing crises can explain the disruptions in the financial system or collapse of the exchange rate. Also,
here we determinate the reasons and implications of Egypt currency crisis, as the crucial role of the foreign
exchange reserve for a country in such a circumstances.
| Item Type: | Article |
|---|---|
| Subjects: | Social Sciences > Economics and business |
| Divisions: | Faculty of Tourism and Business Logistics |
| Depositing User: | Tatjana Boskov |
| Date Deposited: | 02 Nov 2018 11:02 |
| Last Modified: | 02 Nov 2018 11:02 |
| URI: | https://eprints.ugd.edu.mk/id/eprint/20695 |
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