VOL. XLVI

No 5

3-February-2003

EGYPT

Egypt Adopts Floating Exchange Rate As War Fears Grow

The Egyptian pound has depreciated by 20% following the Egyptian Governments adoption on 29 January of a floating exchange rate policy, in a move which many analysts saw as prompted by fears that an impending war in Iraq would force a devaluation or the running down of the countrys reserves of just over $14bn to support the peg to the US dollar. The Governor of the Central Bank of Egypt (CBE) Mahmud Abu...