The Egyptian pound hit a new low on Sunday, three days after it was devalued by about 15 per cent, depreciating to 24 against the US dollar by the close of business.
The government of President Abdel Fattah El Sisi, sought to calm nerves after the pound's slide, publishing figures showing the strategic reserves of main staples, including wheat, would last for up to six months.
Egypt on Thursday said it was adopting a system that allows the value of the pound to be determined by supply and demand.
That met a key demand by the IMF through months of negotiations that came to fruition last week with a deal for a $3 billion loan from the Washington-based lender.
Egypt is also set to receive $5bn from international backers and another $1bn from a newly created sustainability fund, the IMF said.
Egypt’s economy has struggled to weather the fallout from the Russia-Ukraine war, with its imports bill soaring, particularly for food and fuel, and the swift outflow of about $25bn from its once-lucrative debt market.
The pound closed on Thursday at about 22.5 to the dollar. It was trading about 19.6 before the devaluation, the second such move since March and the third in the past six years.
The falling value of the pound — 35 per cent since March — is almost certain to fuel inflation, which was already about 15 per cent in September, hitting hard most of Egypt’s 104 million people.
Analysts believe the pound’s value will continue to slide before it settles at about 25 to the dollar by the end of the year.
The return of investors to the country’s debt market, higher revenues from tourism and investments from its Gulf Arab allies could bring stability to the currency in 2023, they say.
Mr El Sisi’s government, meanwhile, announced on Sunday that, as of now, the country’s reserves of wheat would meet demand until April, the start of the local harvest season.
There is enough sugar in storage to meet demand until February and cooking oil until May. Egypt is self-sufficient in rice, another staple.
Egypt is often the world’s largest wheat importer — 13 million tonnes on average — and has dealt with soaring prices on world markets after the Russia-Ukraine war broke out in February.
Prices later decreased but there is a likelihood now that they will rise again after Russia suspended an agreement to allow major grower Ukraine to export the grain from its Black Sea ports.
Egypt had relied on the two warring nations for about 80 per cent of its wheat imports, which are key to meeting domestic demand for bread sold at heavily subsidised prices to about 60 million low-income people.
Mr El Sisi went to great lengths last week to explain the woes of the economy to Egyptians, giving a two-hour address at an economic conference on Tuesday and phoning in a night-time talk show for 90 minutes.
His comments were mostly a defence of his economic policies against critics who have questioned his government’s spending priorities.
They have singled out some of the larger mega projects on which it has embarked, such as building about 30 cities, including a smart city in the desert east of Cairo, which will become the nation’s capital.
Mr El Sisi has shot back, saying the projects created millions of jobs and prepared the country for growth and a surge in investments.
“The problem with this country is that its economic resources cannot afford good services in the various sectors,” he said last week of education and health.
But Mr El Sisi acknowledged that Egyptians had endured enough hardship since he embarked on economic reforms in 2016.
They included new taxes, higher charges for services and utilities, and lifting state subsidies on fuel, potable water and domestic electricity.
“Our situation does not permit us to increase their burden. On the contrary, we need to expand our social protection umbrella,” he said.
Mr El Sisi was referring to multibillion dollar programmes his government introduced to protect Egyptians from the effects on the economy brought about by the coronavirus and the Russia-Ukraine war.
Normcore explained
Something of a fashion anomaly, normcore is essentially a celebration of the unremarkable. The term was first popularised by an article in New York magazine in 2014 and has been dubbed “ugly”, “bland’ and "anti-style" by fashion writers. It’s hallmarks are comfort, a lack of pretentiousness and neutrality – it is a trend for those who would rather not stand out from the crowd. For the most part, the style is unisex, favouring loose silhouettes, thrift-shop threads, baseball caps and boyish trainers. It is important to note that normcore is not synonymous with cheapness or low quality; there are high-fashion brands, including Parisian label Vetements, that specialise in this style. Embraced by fashion-forward street-style stars around the globe, it’s uptake in the UAE has been relatively slow.
World%20Cup%202023%20ticket%20sales
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FA Cup fifth round draw
Sheffield Wednesday v Manchester City
Reading/Cardiff City v Sheffield United
Chelsea v Shrewsbury Town/Liverpool
West Bromwich Albion v Newcastle United/Oxford United
Leicester City v Coventry City/Birmingham City
Northampton Town/Derby County v Manchester United
Southampton/Tottenham Hotspur v Norwich City
Portsmouth v Arsenal
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Generation Start-up: Awok company profile
Started: 2013
Founder: Ulugbek Yuldashev
Sector: e-commerce
Size: 600 plus
Stage: still in talks with VCs
Principal Investors: self-financed by founder
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
UAE currency: the story behind the money in your pockets
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
if you go
The flights
Direct flights from the UAE to the Nepalese capital, Kathmandu, are available with Air Arabia, (www.airarabia.com) Fly Dubai (www.flydubai.com) or Etihad (www.etihad.com) from Dh1,200 return including taxes. The trek described here started from Jomson, but there are many other start and end point variations depending on how you tailor your trek. To get to Jomson from Kathmandu you must first fly to the lake-side resort town of Pokhara with either Buddha Air (www.buddhaair.com) or Yeti Airlines (www.yetiairlines.com). Both charge around US$240 (Dh880) return. From Pokhara there are early morning flights to Jomson with Yeti Airlines or Simrik Airlines (www.simrikairlines.com) for around US$220 (Dh800) return.
The trek
Restricted area permits (US$500 per person) are required for trekking in the Upper Mustang area. The challenging Meso Kanto pass between Tilcho Lake and Jomson should not be attempted by those without a lot of mountain experience and a good support team. An excellent trekking company with good knowledge of Upper Mustang, the Annaurpuna Circuit and Tilcho Lake area and who can help organise a version of the trek described here is the Nepal-UK run Snow Cat Travel (www.snowcattravel.com). Prices vary widely depending on accommodation types and the level of assistance required.
Background: Chemical Weapons
Blackpink World Tour [Born Pink] In Cinemas
Starring: Rose, Jisoo, Jennie, Lisa
Directors: Min Geun, Oh Yoon-Dong
Rating: 3/5
Honeymoonish
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Elie%20El%20Samaan%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3ENour%20Al%20Ghandour%2C%20Mahmoud%20Boushahri%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
UAE currency: the story behind the money in your pockets
Results
2.30pm: Dubai Creek Tower – Handicap (PA) Dh40,000 (Dirt) 1,200m; Winner: Marmara Xm, Gary Sanchez (jockey), Abdelkhir Adam (trainer)
3pm: Al Yasmeen – Maiden (PA) Dh40,000 (D) 1,700m; Winner: AS Hajez, Jesus Rosales, Khalifa Al Neyadi
3.30pm: Al Ferdous – Maiden (PA) Dh40,000 (D) 1,700m; Winner: Soukainah, Sebastien Martino, Jean-Claude Pecout
4pm: The Crown Prince Of Sharjah – Prestige (PA) Dh200,000 (D) 1,200m; Winner: AF Thayer, Ray Dawson, Ernst Oertel
4.30pm: Sheikh Ahmed bin Rashid Al Maktoum Cup – Handicap (TB) Dh200,000 (D) 2,000m; Winner: George Villiers, Antonio Fresu, Bhupat Seemar
5pm: Palma Spring – Handicap (PA) Dh40,000 (D) 2,000m; Winner: Es Abu Mousa, Antonio Fresu, Abubakar Daud
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Country-size land deals
US interest in purchasing territory is not as outlandish as it sounds. Here's a look at some big land transactions between nations:
Louisiana Purchase
If Donald Trump is one who aims to broker "a deal of the century", then this was the "deal of the 19th Century". In 1803, the US nearly doubled in size when it bought 2,140,000 square kilometres from France for $15 million.
Florida Purchase Treaty
The US courted Spain for Florida for years. Spain eventually realised its burden in holding on to the territory and in 1819 effectively ceded it to America in a wider border treaty.
Alaska purchase
America's spending spree continued in 1867 when it acquired 1,518,800 km2 of Alaskan land from Russia for $7.2m. Critics panned the government for buying "useless land".
The Philippines
At the end of the Spanish-American War, a provision in the 1898 Treaty of Paris saw Spain surrender the Philippines for a payment of $20 million.
US Virgin Islands
It's not like a US president has never reached a deal with Denmark before. In 1917 the US purchased the Danish West Indies for $25m and renamed them the US Virgin Islands.
Gwadar
The most recent sovereign land purchase was in 1958 when Pakistan bought the southwestern port of Gwadar from Oman for 5.5bn Pakistan rupees.
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
