Egypt's currency, the Egyptian pound, has fallen due to a combination of factors, primarily stemming from external pressures that have built up over time.
According to the provided reference from the Peterson Institute for International Economics (PIIE), Egypt's economic performance and currency value have been significantly impacted by:
- Political turmoil
- Wars
- Shifts in global political alignments
- Regional conflicts
- Terms-of-trade shocks
These events have historically led to a buildup of external pressures, ultimately forcing currency devaluations. The PIIE notes that these devaluations have induced recurring crises since 1952. Therefore, the fall in Egypt's currency is not a singular event but rather a recurring pattern linked to broader economic and geopolitical instability.
In summary, the fall of the Egyptian currency can be attributed to persistent external economic and political pressures that trigger devaluations.
