Effects of Egyptian Pound Slump Profound
Tracking Global Events | 10 January 2023
Egypt’s pound dropped to a record low in December, its biggest fall since an earlier decline in value in October. This comes just two months after the government agreed to a $3 billion rescue loan from the International Monetary Fund. The currency dropped 40% against the dollar in 2022 – and kicked off 2023 by falling a further 7%. Amid this uncertainty, Premise collected sentiment data to understand how the depreciation is affecting the Egyptian population, who are experiencing massive price hikes and increasing inflation.
Insights
- Among respondents surveyed, 30% blame the current Egyptian President El Sisi for the pound’s loss in value, 28% blame the IMF and 23% blamed the National Government. The remaining
respondents placed blame on banks and foreign governments. - Public anger around the economic situation continues to boil over with nearly 70% of respondents saying their income does not allow them to consistently pay for their basic needs; additionally 83% have reduced their food consumption due to their financial situation.
- Further buttressing this point, 86% of respondents said that meat and fish have become unaffordable.
- As the IMF lending comes into the spotlight in Egypt, just 21% ofrespondents thought that its economic package would offer relief to the Egyptian economy, while 45% believed it would not help.
- 52% of Egyptian respondents are considering permanently leaving the country because of the worsening economic situation. Top immigration destinations cited were the US/Canada, the Arab world, and Europe
Confidence scale in Sisi’s government in adequately addressing the ongoing economic crisis and currency devaluation
Where do you usually keep your money and/or savings
Methodology
On January 10th, Premise launched a convenience sample survey in Egypt receiving 716 responses across the country. Our demographic panel consisted of 70% male and 30% female respondents with majority falling between the age range of 25-35.
Premise in Action
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