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A Dollar Crisis Threatens Egypt's Economy

MIN READMar 10, 2016 | 09:30 GMT

Cairo's erratic approach to its economic problems has citizens concerned and doubting its decision-making.

(MOHAMED EL-SHAHED/AFP/Getty Images)

Egypt's economy is once again in crisis. Cairo, unwilling to move more quickly on the painful economic reforms that would ease its heavy deficit burden, has all but drained its foreign exchange reserves. But its people have grown accustomed to the government's wide-reaching subsidy programs, which are being kept afloat largely by foreign aid. If the Egyptian government cannot find a way to sustain them, the country's fragile stability may not hold. Western and regional powers have considered Egypt a crucial Middle Eastern ally for most of its modern history. Cairo's backers will make sure that the Egyptian economy continues to limp onward, even as it deteriorates. However, even if Egypt accepts their help in an effort to keep funds flowing, the concerns of the Egyptian people will not be alleviated. The economy will still be scraping by, and, as criticism of the government's handling of the crisis grows, so too...

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