The official (basically pegged) Egyptian pound to dollar exchange rate is currently 31-to-1, but on the black market it's about double that.
People naturally try to arbitrage that difference, and so the country has to start enforcing capital controls in order to reduce the ways that the fake exchange rate can be arbitraged.
A vicious cycle that inevitably leads to major devaluation.
LynAlden / Lyn Alden
npub1a2…cw83a
2024-01-23 20:22:54
Author Public Key
npub1a2cww4kn9wqte4ry70vyfwqyqvpswksna27rtxd8vty6c74era8sdcw83aPublished at
2024-01-23 20:22:54Event JSON
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"content": "The official (basically pegged) Egyptian pound to dollar exchange rate is currently 31-to-1, but on the black market it's about double that.\n\nPeople naturally try to arbitrage that difference, and so the country has to start enforcing capital controls in order to reduce the ways that the fake exchange rate can be arbitraged.\n\nA vicious cycle that inevitably leads to major devaluation.",
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