• Egypt is currently facing financial difficulties and galloping inflation, leading to a surge in the price of bitcoin against EGP on Binance.
• The depreciation of the Egyptian pound is mainly due to the 2011 revolution, military conflict between Russia and Ukraine, and the COVID-19 pandemic.
• The standard of living in Egypt has been decreasing due to high inflation that diminishes purchasing power.
Egypt’s Economic Crisis
Egypt is yet another country that currently copes with severe financial difficulties and galloping inflation, which have harmed the local currency. As such, the price of bitcoin against EGP has surged notably lately, exceeding 1,200,000 EGP on Binance, which is a record high.
The Causes
Some experts claim the financial problems started after the bloody 2011 revolution when approximately two million people flooded the streets protesting against the reign of President Hosni Mubarak. Egypt entered a turbulent political period in the following years, unable to sustain a stable government until 2014. The COVID-19 global pandemic and the military conflict between Russia and Ukraine are other factors that worsened the issues.
Decline In Living Standards
The standard of living in Egypt has been on a downtrend due to high inflation diminishing its purchasing power. The condition of the Egyptian pound is quite worrying since it has depreciated by nearly 40% against USD over 2021 alone.
Wheat And Grain Dependency
Egypt depends on imported wheat and grain from Black Sea region deliveries have been interrupted.
Bitcoin Price Surges
Despite all this chaos, one positive effect was witnessed recently as Bitcoin’s valuation hit an all-time high against EGP on Binance despite not being as high on other cryptocurrency exchanges like Coinbase.