Egypt is drafting its 2016-2017 budget on the basis of an exchange rate of EGP8.25 to the dollar compared to EGP7.75 this fiscal year, two government sources said on Monday, indicating the central bank is preparing to devalue.
A devaluation of Saudi Arabia's currency could cause such political instability that Riyadh has little choice but to stick to its promise to use vast foreign exchange reserves to defend the riyal's 30-year-old peg to the US dollar.
There is at least a 25 per cent chance of a near-term devaluation of the Saudi Arabian riyal, rising to 40 per cent should oil prices stay at current levels throughout 2016, Societe Generale said on Thursday.
The Saudi riyal's
China accelerated the devaluation of the yuan on Thursday, sending currencies across the region reeling and domestic stock markets tumbling, as investors feared the Asian giant was kicking off a virtual trade war against its competitors.
Saudi Arabia has the tools available to protect itself as low oil prices push the current account and budget balances of the world's top crude exporter deep into deficit, senior bankers in Saudi Arabia and the Gulf said.
Finance ministers from the Asia-Pacific Economic Cooperation (Apec) group said on Friday they were committed to addressing weaknesses in their economies but stressed they would not seek to gain a competitive edge by weakening their currencies.
There is a shared belief among the members of the Group of 20 leading economies in the need to "double down" against competitive currency devaluation and avoid it in both policy and language, a senior US Treasury official said on Satur
China's central bank said on Thursday there was no reason for the yuan to fall further given the country's strong economic fundamentals, in a bid to reassure jittery global markets after it devalued the currency earlier in the week.
China's yuan hit a four-year low on Wednesday, falling for a second day after authorities devalued it in a move that sparked fears of a global currency war and accusations that Beijing was unfairly supporting its struggling exporters.
Life in Egypt is about to get harder for ordinary people who will bear the brunt of inflation caused by a decline in the value of their currency. As elections approach, President Mohamed Mursi's Muslim Brotherhood may pay a