Economic Crisis In Egypt: Bank Run Feared, New Withdrawl Limits Imposed

Posted on : December 28, 2012 By
Current Events Economics Politics 

By Mail Foreign Service | From DailyMail.co.uk | On Wednesday, December 26th, 2012

Big business: A vendor sells nuts in front of a giant poster of a U.S. dollar outside a currency exchange office in Cairo as the Government announced a £6,000 limit on how much can be taken out of the country.
Big business: A vendor sells nuts in front of a giant poster of a U.S. dollar outside a currency exchange office in Cairo as the Government announced a £6,000 limit on how much can be taken out of the country.

Egypt has imposed a limit on the amount of money people can take out of the country, amid fears of an impending run on the banks.

The move to ban leaving with more than £6,000 came as thousands of Egyptians withdrew savings from banks to hoard cash at home.

Anxiety about a deepening political and economic crisis has gripped the country in past weeks, with many people rushing to buy dollars and take out their savings from banks.

As well as huge political problems, the country also has a faltering economy.

The panic came as the country’s new president, Mohammed Morsi, called for ‘unity’ after a referendum approved a controversial constitution which gave him and islamist allies more powers.

The new charter, which the secularist opposition says betrays Egypt’s 2011 revolution by dangerously mixing religion and politics, has polarised the Arab world’s most populous nation and prompted occasionally violent protest on the streets.

Results announced on Tuesday showed Egyptians had approved the text with about 64 percent of the vote, paving the way for a new parliamentary election in about two months.

The government has begun a series of meetings with businessmen, trade unions, non-governmental organisations and other groups to persuade them of the need for tax increases and spending cuts to resolve the country’s financial crisis.

Mursi has committed to such austerity measures to receive loans from the International Monetary Fund.

While stressing the importance of political stability to heal the economy, Mursi’s government has sought to play down economic woes and appealed for unity in the face of hardship.

‘The government calls on the people not to worry about the country’s economy,” Parliamentary Affairs Minister Mohamed Mahsoub told the upper house in a speech.

‘We are not facing an economic problem but a political one and it is affecting the economic situation. We therefore urge all groups, opponents and brothers, to achieve wide reconciliation and consensus.’

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This article was originally posted at http://www.dailymail.co.uk/news/article-2253525/Egypt-fears-run-banks-imposes-limit-people-withdraw.html

News Reporter
RSOP is the co-founder & Executive Editor of Radical Survivalism Webzine, as well as a Family Preparedness Consultant with over seven years of personal experience in the self-reliance game. RSOP's many preparedness roles within his own group include team mechanic, head of security, electrician, and project designer/engineer.