An employee counts banknotes at currency exchange in Cairo. The Egyptian pound has lost half its value against the US dollar since March, following a devaluation demanded as part of a US$3 billion IMF loan agreement. Photo: AFP
Why Pakistan and Egypt are too big to fail to a Sri Lanka-style economic crisis
- Both are suffering a severe currency crisis fuelled by unsustainable spending and unaccountable borrowing from lenders that include the IMF and China
- But analysts say economic and political partners will ensure they ‘sail through’ the crises by imposing austerity, which carries its own consequences
An employee counts banknotes at currency exchange in Cairo. The Egyptian pound has lost half its value against the US dollar since March, following a devaluation demanded as part of a US$3 billion IMF loan agreement. Photo: AFP
