Badra Explains Pound Devaluation Impact

Economic expert Mustafa Badra discussed a significant decline in the value of the Egyptian pound, noting that it has fallen by as much as 85% since 2011. This devaluation transformed it from 3.5 pounds to approximately 15 piastres per pound. He explained that these declines resulted from challenging economic conditions in Egypt, along with global factors such as the US dollar weakening by up to 30%, a decrease in the British pound, the Japanese yen's fall, and the impacts of various wars and crises, including the Russia-Ukraine conflict and the COVID-19 pandemic. Badra pointed out that these challenges have increased debt burdens and raised the costs of infrastructure projects—such as building electricity pylons—whose expenses grew from about one million to ten million Egyptian pounds. He emphasized that Egypt has been particularly affected by these circumstances, which have set the country back several years. Nevertheless, he noted that international institutions like the International Monetary Fund confirm that the Egyptian economy has recently shown signs of improvement despite these difficulties.

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