Egyptian crisis strikes Central Europe

Published on 1 February 2011 at 11:36


“Chaos in Egypt: markets fall as oil rises,” reports Hospodářské noviny. The daily explains that markets in Central and Eastern Europe, which investors view as still in the process of development and thus more vulnerable, have been hard-hit by the Egyptian crisis. As a result, “the Czech crown and Hungarian forint have begun to slide.” Investors are panicking because the chaos in Egypt could shut down the Suez Canal, which is the conduit for 2.6% of the world’s oil production. That may not seem like a lot, notes Hospodářské noviny, but the canal remains very important to Europe. At more than 100 dollars a barrel, oil prices have reached a two-year high. A global increase in the cost of food and textiles has also been forecast, because Egypt is the world’s main wheat importer and one of its principle exporters of cotton.

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