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Cairo: In the past few days, the value of the US dollar against the Egyptian pound has increased to 49.25 Egyptian pounds.
Egyptian economic experts attributed the growth to recent regional developments.
“The biggest factor affecting the value of the dollar against the pound is remittances from Egypt,” said economic expert Dr. Ala Ali said.
“If it increases, the value of the dollar will stabilize or decrease against the pound, and if it decreases, the value of the dollar will increase, and thus the value of the pound will decrease,” the economist told Arab News.
“Remittances from Egyptians abroad are high after the Egyptian government decided to liberalize the exchange rate, which it took about eight months ago, which contributed to the stability of the dollar at 48 pounds.
“However, with the recent tensions, remittances from Egyptians in foreign currencies have decreased, and thus the value of the dollar against the pound has increased by about one pound,” Ali said.
“Tourism resources, investments, exports, and remittances of Egyptians have a great value in dollar earnings.”
Ali said he hoped prices would stabilize again after Egypt received the third tranche of its International Monetary Fund loan, which exceeded about $800 million.
Mohamed Shawky, a professor of financial risk management, also commented on the recent rise in the value of the dollar against the Egyptian pound.
Shawki cited regional tensions and the threat of an Iranian military response against Israel following the assassination of Hamas leader Ismail Haniyah in Tehran.
He emphasized to Arab News: “The more tense the situation in the region, the more negative the economic situation is affected.”
Matta Besai, head of the Chambers of Commerce's importers division, said: “In the past period there has been a kind of reservation among importers with respect to the dollar due to fear of regional events and instability in the region.”
These developments “feared an explosion of the regional situation in light of Iranian threats to retaliate against Israel prompted large numbers to reduce spending in dollars and to work to reduce costs in all possible ways.”
He added: “Banks are working normally, and dollars are being distributed to importers as normal after the Ras al-Hekma deal, which helped in huge financial flows in the historic investment deal that reached $35 billion.”
“The main reason for the increase in the value of the dollar in banks is the tension in the regional situation, which has clearly expressed fear among investors,” Besai said.
At the same time, he stressed that the state “is working normally and is effectively dealing with the crisis.”

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