Bloomberg Economic's Daoud on Lira & Saudi outlook

The video discusses economic challenges in Turkey, Egypt, and Saudi Arabia. Turkey faces a vicious cycle of inflation and currency devaluation, with potential solutions like aggressive rate hikes. Egypt struggles with currency devaluation due to external deficits and low interest rates. Saudi Aramco's increased dividends help offset Saudi Arabia's budget deficit amid oil production cuts.

What is the main reason behind the vicious cycle affecting Turkey's economy?

• High import costs

• Labor costs and exchange rate issues

• Low foreign investment

• High government spending

What measure has the Turkish central bank taken to attract savers to lira deposits?

• Reducing inflation rates

• Increasing government spending

• Introducing FX protected deposits

• Offering low interest rates

What has been the impact of Egypt's currency devaluations since March last year?

• The pound has strengthened by 50%

• The pound has weakened by 50%

• The pound has remained stable

• The pound has fluctuated without a clear trend

Why is another devaluation of the Egyptian pound considered likely?

• Strong net foreign assets

• Stable economic conditions

• High foreign investment

• Current account deficit and low foreign inflows

How does Saudi Aramco's increased dividend affect Saudi Arabia's fiscal situation?

• It increases the budget deficit

• It reduces the budget deficit

• It has no impact on the budget

• It leads to a budget surplus