Last month, the Egyptian pound reached EGP13 to the US dollar for the first time, highlighting the massive stresses on the Egyptian economy and the inevitability of a further devaluation (long expected by the markets) despite the Central Bank of Egypt’s efforts to have controlled re-evaluation of the pound. Also last week, Egypt announced that it was in the final stages of negotiating an agreement for as much as $12 billion in loans (which will of course come with policy conditions) from the IMF. Yesterday, President Abdelfattah al-Sisi warned that austerity measures are coming. All of this points to the continuing fall of the purchasing power of average Egyptians, from the poorest segment of the population (only partly sheltered by price controls on basic goods) to the middle class (perhaps the most dramatically affected).
These developments have appointed once pro-Sisi commentators to lash out. Like many once pro-establishment Egyptians I have met in the last year, it is not so much that they blame Sisi for the alarming economic condition of the country (that after all is a long-term trend) but his lack of vision for the economy and indulgence in wasteful prestige projects and the lack of transparency with what is being done with money raised from the Egyptian public and foreign backers. In the piece below, the Nasserist columnist Abdullah al-Senawi (who in 2013-14 was said to have Sisi’s ears and was a major supporter from the “nationalist left” through his TV show and writings) skewers the Sisi regime for his and more, predicting that such poor economic stewardship may very well spell its downfall.
Thanks to our friends at Industry Arabic for the translation. Do check them out for your Arabic translation needs - we’re very happy with them, and the New York Times recently used them to translate an excellent piece on Saudi Arabia by our friend Ben Hubbard.Read More