Stock market tumbles as Morsi expands powers

As President Morsi works to resolve tensions over his expanded powers, confidence in Egypt's government and economy falters.

Protests continue in Egypt as the country's President, Mohamed Morsi, meets with senior judges to resolve tensions over his decision last week to expand his presidential powers. The country's stock market has also reacted strongly to Morsi's power expansion, falling by almost 10 percent over the weekend.

The BBC’s Jon Leyne in Cairo says the political turmoil comes at an important time for Egypt. The government is due to begin negotiations with the International Monetary Fund, which has already agreed in principle to a multi-billion dollar loan for the country.

“It still needs to go to the IMF board of directors, which the United States has a big say on. Washington has already said it doesn’t like what President Morsi has done. So in theory, this could be held over Egypt as it tries to get its crucial IMF loan,” says Leyne. 

Comments

I agree to American Public Media's Terms and Conditions.
With Generous Support From...