The Egyptian pound strengthened by about 25 per cent against the US dollar at the weekend, reaching 55 pounds on Monday after a low of more than 70 on parallel markets last week.
The rise has been celebrated in state media reports but is expected to be temporary as dollar traders and holders have only reduced transactions because of reports that a devaluation of the pound is imminent.
It was, in part, caused by a widespread state crackdown on currency and gold traders after repeated accusations by authorities that profiteering traders were driving up the exchange rate, a political economy professor at Cairo University told The National.
“Since the start of the year, there has been report after report of currency and gold traders being arrested and caught red-handed with large amounts of gold or dollars," said the professor, who requested anonymity.
"I definitely think some of it is exaggerated, but the sheer number of arrests itself is a sign that the state is taking this very seriously."
Speculation on social media and talk shows that a Gulf country is soon going to deposit $22 billion into Egypt’s central bank has raised hopes that the country's woes will be eased by an influx of foreign currency into its official financial institutions, rather than the black market, the professor said.
Black markets don’t stay down for long. They will adapt to the crackdown
Political economy professor at Cairo University
Another factor was a statement from the International Monetary Fund (IMF), with which Egypt is in talks for another $3 billion in funding, that its delegation had made "excellent progress in discussions on the comprehensive policy package” during a visit that ended on February 1.
The IMF statement created anticipation that another devaluation of the Egyptian pound, the fourth since March 2022 and a key condition of the IMF loan, was imminent, the professor said.
“The drop we are seeing is mainly because black market traders and dollar holders are keeping their FX [foreign exchange] until they see where the devaluation and the crackdown are going to end up.”
Some black market traders confirmed that they had reduced operations significantly over the past week and were limiting transactions only to buying dollars from trusted sources.
Most have also halted selling dollars until the devaluation is implemented and the state crackdown ends, they told The National.
The pound's new strength has not affected prices in Egypt. The cost of food, in particular, increased dramatically in January, and is continuing to rise.
This is because the crackdown has merely made people stop trading dollars, affecting the supply of foreign currency needed for further imports, according to the Cairo University professor.
“Food prices are going up because dollars for imports are being withheld by black market traders trying to figure out their next move," he said.
"Supermarkets are selling their stocked supplies, which, because of supply and demand, are increasing in price as supplies dwindle."
Although several international financial organisations, including HSBC and Goldman Sachs, are anticipating that the pound will be devalued by the end of March, the government has not said anything about the timing or extent.
“There are currently two main camps of economic experts advising the government. Some, like Naguib Sawiris, have come out in support of the government lifting its hands from the currency completely so it trades at the same rate as the black market," the professor said.
"This is what you might call a neo-liberal approach.
“There is also a strong camp advocating for the crackdown on currency traders and a fixing of the exchange rate.
"Considering the latest round of arrests, it’s safe to say the government is going with the latter before the former.”
Part of the government's approach is to scare dollar holders into depositing their dollars in banks and not giving them to us
Currency trader
The government has repeatedly said that the black market price for the dollar is exaggerated because of profiteering and is trying to bring down the parallel rate before unifying it with the official exchange rate.
“The plan is to reduce demand for dollars through making it risky for people to trade on the black market,” one black market trader said.
"If someone is caught, they will have their money confiscated, which seems to be working so far as a deterrent. I am getting a lot less clients than I was in December.
"Part of the government's approach is to scare dollar holders into depositing their dollars in banks and not giving them to us."
Neither the professor nor the traders expect the currency black market in Egypt to remain dormant for long, and predicted that the US dollar will rise again.
“Black markets don’t stay down for long. They will adapt to the crackdown," the professor said.
"Sure, people will go to banks now while there is fear and uncertainty, but once the situation adjusts, I think they will go to the black market again.
"People need all the money they can get right now."
Egypt’s Cabinet last week approved a motion to halt any new government projects until at least July, by which time a debt repayment of about $16 billion will fall due, according to central bank data.
Another $16 billion in loan repayments is due by the end of the year, which has left many Egyptians worried after the sharpest rise in prices since the economic crisis began in March 2022.
KILLING OF QASSEM SULEIMANI
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How to volunteer
The UAE volunteers campaign can be reached at www.volunteers.ae , or by calling 800-VOLAE (80086523), or emailing info@volunteers.ae.
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
What is an FTO Designation?
FTO designations impose immigration restrictions on members of the organisation simply by virtue of their membership and triggers a criminal prohibition on knowingly providing material support or resources to the designated organisation as well as asset freezes.
It is a crime for a person in the United States or subject to the jurisdiction of the United States to knowingly provide “material support or resources” to or receive military-type training from or on behalf of a designated FTO.
Representatives and members of a designated FTO, if they are aliens, are inadmissible to and, in certain circumstances removable from, the United States.
Except as authorised by the Secretary of the Treasury, any US financial institution that becomes aware that it has possession of or control over funds in which an FTO or its agent has an interest must retain possession of or control over the funds and report the funds to the Treasury Department.
Source: US Department of State
UAE currency: the story behind the money in your pockets
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
Killing of Qassem Suleimani
The biog
Title: General Practitioner with a speciality in cardiology
Previous jobs: Worked in well-known hospitals Jaslok and Breach Candy in Mumbai, India
Education: Medical degree from the Government Medical College in Nagpur
How it all began: opened his first clinic in Ajman in 1993
Family: a 90-year-old mother, wife and two daughters
Remembers a time when medicines from India were purchased per kilo
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Getting there
The flights
Flydubai operates up to seven flights a week to Helsinki. Return fares to Helsinki from Dubai start from Dh1,545 in Economy and Dh7,560 in Business Class.
The stay
Golden Crown Igloos in Levi offer stays from Dh1,215 per person per night for a superior igloo; www.leviniglut.net
Panorama Hotel in Levi is conveniently located at the top of Levi fell, a short walk from the gondola. Stays start from Dh292 per night based on two people sharing; www. golevi.fi/en/accommodation/hotel-levi-panorama
Arctic Treehouse Hotel in Rovaniemi offers stays from Dh1,379 per night based on two people sharing; www.arctictreehousehotel.com
Mohammed bin Zayed Majlis
TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
Women & Power: A Manifesto
Mary Beard
Profile Books and London Review of Books
World Cricket League Division 2
In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.
UAE fixtures
Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final
World Cricket League Division 2
In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.
UAE fixtures
Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final
Killing of Qassem Suleimani
1,000 Books to Read Before You Die: A Life-Changing List
James Mustich, Workman
RESULTS
5pm: Watha Stallions Cup Handicap (PA) Dh 70,000 (Dirt) 2,000m
Winner: Dalil De Carrere, Bernardo Pinheiro (jockey), Mohamed Daggash (trainer)
5.30pm: Maiden (TB) Dh 70,000 (D) 2,000m
Winner: Miracle Maker, Xavier Ziani, Salem bin Ghadayer
6pm: Maiden (PA) Dh 70,000 (D) 1,600m
Winner: Pharitz Al Denari, Bernardo Pinheiro, Mahmood Hussain
6.30pm: Maiden (PA) Dh 70,000 (D) 1,600m
Winner: Oss, Jesus Rosales, Abdallah Al Hammadi
7pm: Handicap (PA) Dh 70,000 (D) 1,400m
Winner: ES Nahawand, Fernando Jara, Mohamed Daggash
7.30pm: Maiden (PA) Dh 70,000 (D) 1,000m
Winner: AF Almajhaz, Abdul Aziz Al Balushi, Khalifa Al Neyadi
8pm: Maiden (PA) Dh 70,000 (D) 1,000m
Winner: AF Lewaa, Bernardo Pinheiro, Qaiss Aboud.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Guns N’ Roses’s last gig before Abu Dhabi was in Hong Kong on November 21. We were there – and here’s what they played, and in what order. You were warned.
- It’s So Easy
- Mr Brownstone
- Chinese Democracy
- Welcome to the Jungle
- Double Talkin’ Jive
- Better
- Estranged
- Live and Let Die (Wings cover)
- Slither (Velvet Revolver cover)
- Rocket Queen
- You Could Be Mine
- Shadow of Your Love
- Attitude (Misfits cover)
- Civil War
- Coma
- Love Theme from The Godfather (movie cover)
- Sweet Child O’ Mine
- Wichita Lineman (Jimmy Webb cover)
- Wish You Were Here (instrumental Pink Floyd cover)
- November Rain
- Black Hole Sun (Soundgarden cover)
- Knockin’ on Heaven’s Door (Bob Dylan cover)
- Nightrain
Encore:
- Patience
- Don’t Cry
- The Seeker (The Who cover)
- Paradise City
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
The biog
Name: Timothy Husband
Nationality: New Zealand
Education: Degree in zoology at The University of Sydney
Favourite book: Lemurs of Madagascar by Russell A Mittermeier
Favourite music: Billy Joel
Weekends and holidays: Talking about animals or visiting his farm in Australia
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'Ashkal'
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Company profile
Company name: Suraasa
Started: 2018
Founders: Rishabh Khanna, Ankit Khanna and Sahil Makker
Based: India, UAE and the UK
Industry: EdTech
Initial investment: More than $200,000 in seed funding
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
PSA DUBAI WORLD SERIES FINALS LINE-UP
Men’s:
Mohamed El Shorbagy (EGY)
Ali Farag (EGY)
Simon Rosner (GER)
Tarek Momen (EGY)
Miguel Angel Rodriguez (COL)
Gregory Gaultier (FRA)
Karim Abdel Gawad (EGY)
Nick Matthew (ENG)
Women's:
Nour El Sherbini (EGY)
Raneem El Welily (EGY)
Nour El Tayeb (EGY)
Laura Massaro (ENG)
Joelle King (NZE)
Camille Serme (FRA)
Nouran Gohar (EGY)
Sarah-Jane Perry (ENG)
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
UAE currency: the story behind the money in your pockets
