Egyptian police battle protesters, 33 dead

Agencies | Updated: 2011-11-22 06:42

Economic woes

The instability could accelerate Egypt's slide toward a currency crisis, forcing a sharp depreciation of the Egyptian pound in the next few months and conceivably prompting Cairo to impose capital controls, analysts said.

"The violence and political noise is going to erode whatever confidence was left in the Egyptian economy, and may result ... in an acceleration of capital outflows," said Farouk Soussa, Middle East chief economist at Citigroup.

The military plans to keep its presidential powers until a new constitution is drawn up and a president is elected in late 2012 or early 2013. Protesters want a much swifter transition.

The army said on Monday it had intervened in central Cairo to protect the Interior Ministry, not to clear demonstrators from nearby Tahrir Square, whom it also offered to protect.

The Interior Ministry, in charge of a police force widely hated for its heavy-handed tactics in the anti-Mubarak revolt, has been a target for protesters demanding police reform.

The latest street clashes show the depth of frustration, at least in Cairo and some other cities, at the pace of change.

Liberal groups are dismayed by the military trials of thousands of civilians and the army's failure to scrap a hated emergency law. Islamists eyeing a strong showing in the next parliament suspect the army wants to curtail their influence.

Analysts say Islamists could win 40 percent of assembly seats, with a big portion going to the Muslim Brotherhood.

The Revolution Youth Coalition, an activist group, called for a "million-man march" in Tahrir on Tuesday to back demands for a new national salvation government to run the country in the transition phase, instead of the military council.