Published February 13th, 2012
Arabs are increasingly relying on the US dollar to escape some of the economic repercussions of the Arab Spring. According to a study by New York’s International Peace Institute, Egyptians and others are choosing to use dollars rather than their own currencies. Iraq’s central bank says that its dollars are sustaining Syria’s black market in currency, and in Libya, people line up at banks every morning to purchase dollars.
A year after leaders were toppled throughout North Africa, the transitions in governments has not managed to ease economic hardships. Two-thirds of Egyptians see the economy as the country’s primary challenge, and since the West’s promised aid has not yet materialized, saving in foreign currencies has increased and government borrowing costs have skyrocketed. (more…)