Egypt's Trade Deficit is Now $35 billion a Year
Egypt's trade deficit nearly doubled in the year through April as demand for its exports fell 14% but import costs rose:
With the jump in wheat and other grain prices due to the American drought, Egypt's import costs will rise substantially. Given the collapse of tourism and the sharp reduction of worker's remittances after the Libyan revolution, Egypt's current account deficit will be almost as large as its trade deficit. That means Egypt will have its hand out for some $30 billion a year -- much larger than the most pessimistic estimates (including mine) just a few months ago. Egypt has $15 billion in total reserves but only $7 billion in liquid reserves.
I'd say they are in big trouble. My suspicion is that SCAF will let the Muslim Brotherhood government of Mohamed Morsi strut around just enough to attract blame for the disaster now in the works.
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