Moscow & Cairo to drop USD, use national currencies in bilateral trade – Putin

[Frogman]

Bullshit! Egypt is heavily dependent on that aid, since it figures on her budget, and it depend too on the GCC help...You start sounding like the Al Hassani, where everything arab is beautiful...Have attended the same school?

The Egyptian budget of 2014/2015 was around 807 Billion EGP, which translates to $105788903700.00. Even with a high budget deficit percentage any moron can work out that $1.5B (the majority of which goes to the military) isn't that much nor is Egypt reliant on it, is 816 EGP that much of a difference? no.

If you'd read my previous post you would know my views on GCC aid.

 

[Ceylal]

The Egyptian budget of 2014/2015 was around 807 Billion EGP, which translates to $105788903700.00. Even with a high budget deficit percentage any moron can work out that $1.5B (the majority of which goes to the military) isn't that much nor is Egypt reliant on it, is 816 EGP that much of a difference? no.

If you'd read my previous post you would know my views on GCC aid.

Really, And then why Egypt was screaming murder when they postpone the Apache deliveries , since that what that money buys...There is only one moron here, in fact two and you can guess the second.

 

[Frogman]

Really, And then why Egypt was screaming murder when they postpone the Apache deliveries , since that what that money buys...There is only one moron here, in fact two and you can guess the second.

Because we want the Apaches? Would Algeria not make its feelings known if the Russians decided not to deliver certain weapons systems? Are the Iranians still not harping on about the contracted S-300? Am I not a bit niffed because I ordered and paid for new gloves that are now ten days late? erh!

You still haven't provided an argument as to why the Egyptian economy is reliant on US aid btw.

 

[Echo_419]

Based on the current weakness of both nations currencies versus the dollar, I'd say its bad for Egypt and Russia. Remember, when the going gets tough and instability rocks the world, it isn't the Yuan or Ruble people flock to. It isn't the Euro or Yen either. It's the USD.

Still, they are denominating bilateral trade in their respective currencies, Egypt will still accept other currencies via trade with other nations. It's just diversifying its portfolio. Nothing wrong with that, it helps reduce exposure and that's a good thing.

Russia on the other hand is up to its old tricks.

Currency-hedged ETFs in vogue as investors clamor for more| Reuters

People flock to the USD as the ultimate hedge against uncertainty. The Ruble is nowhere near any sane persons hedge currency list, too volatile. And honestly, who'd want to sit on a pile of them anyways. They're worth less than our paper-towels based on the current USD-Ruble exchange rate.

Current exchange rate .015 Ru = 1.00 USD.

USD to RUB Exchange Rate - Bloomberg

And from a US perspective, we really couldn't care less what Russia does with our currency. From an Egyptian perspective, they diversify their assets and reduce their exposure risk. From a Russian perspective, they undercut the USD... sort of. A win for all nations.

Good on Egypt!!! Anything that lessens their economic risk and makes their economy more stable in a time of instability and uncertainty is welcomed!

I am feeling lazy so i will just comment with the standard line
Death to Imperialist Western Hegemony by Great Nations of Russia & Egypt

 

[Lonely Hermit]

is this bad?? I dunno

It might be a threat to petro dollar dominance, that is FED will not be able to print to much green paper .

 

[Shotgunner51]

Good reference case