Economics
Egypt Currency Reform Seen Driving Up Costs for Imported Fuel
- Costlier oil products may spur subsidy cuts: Farren-Price
- Egypt seeking new suppliers after Saudis halt crude shipments
Egypt Stocks Soar as Bonds Rally on Currency Float
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Egypt, which relies on imports to meets its energy needs, faces higher costs for gasoline and other oil products unless it cuts fuel subsidies after the government decided to float its currency, according to analysts at Petroleum Policy Intelligence and KBC Energy Economics.
The Arab world’s most populous country took the unprecedented step on Thursday of allowing the pound to trade freely as a step toward stabilizing an economy weakened by a dollar shortage. Egypt spends as much as 10 percent of its annual gross domestic product on subsidies, with fuel subsidies accounting for two-thirds of that amount, according to Mark Bohlund, a Bloomberg Intelligence economist.