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More Trouble for Morsi, This Time in the Pocketbook

By December 31, 2012

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egyptEgyptian President Mohammed Morsi has signed the country's new constitution into law, a move that certainly won't silence protesters who claim that it's an Islamist power grab that silences the country's minorities and women. But Morsi has other problems on his plate, as well. More:

The Egyptian pound slipped further against the dollar on Monday, a downward plunge on the first two days of trading under a new system, as the president tried to assure a worried public that the crisis atmosphere will end soon.

The pound slid nearly 1 percent on Monday from the previous day, bringing the exchange rate at banks to 6.42 pounds to the dollar. It marked a cumulative loss of nearly 4 percent this week, after Egypt's central bank took steps in what bankers believe is an attempt to control the devaluation of the currency.

In an effort to instill confidence among people who have been rushing to sell Egyptian pounds for dollars, President Mohammed Morsi said the pound's fall "does not worry or scare us, and matters will balance out within a matter of days."

His remarks to Arab journalists, carried by the official news agency MENA, come as Egypt grapples with a crippling deficit that the planning minister said Monday is likely to reach 200 billion Egyptian pounds ($31.5 billion) by mid-2013.

Monday's slide of the Egyptian pound came on the second day of trading under a new dollar auction system aimed at regulating the devaluation.

The International Monetary Fund said on Monday it welcomed steps that Egypt has taken to stop a drain on its international reserves, according to Reuters.

And the protests over Morsi's rule still continue.


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