This past week Egypt allow its currency to float as a way to tackle some of their economic challenges.  The result is that it is about a 50% decline in value of the Egyptian Pound ….but its more complicated than that!

Most hotels, cruise operators and big companies operate in US$ already so the impact will for visitors be minimal at least for the moment.  Also many transactions took place anyway outside the regulated exchange rates.

The change for the long suffering ordinary Egyptian is rather more hard though.

Electricity- increased by over 20% , petrol (gas) by 34%, solar by 30%.  This will increase transportation costs, and indeed all costs.  There is also a new and increased Value Added Tax which will affect most services too.

 

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