Youssef Boutros-Ghali, the former Minister of Finance under Mubarak, said that floating the pound was a spot-on decision, but a slightly overdue one. “The FX [foreign exchange] market is like a thermometer—breaking it does not mean you are not well,” he explained. “When government spending increases, a budget deficit widens,” he said. He noted that the budget deficit forces central banks to print unrequited currency. Furthermore, he said that the stability of prices is linked to the budget deficit.

Source: Daily News Egypt March 02, 2017 11:53 UTC