$ 10 in loot of “elusive gold” in Egypt since the beginning of the year

In a journey of up and down, the Egyptians lived on the impact of gold price movements, which eventually rose by 22 percent during the first half of this year, as the price of a 21-carat gram (the most popular in Cairo) moved. with about 178 pounds ($ 10) from 828 pounds ($ 44.21) at the beginning of the year, to record about 1006 pounds ($ 53.72) per gram on Thursday and the price of the gold pound (weighing 8 grams of 21 carats) increased by 1422 pounds ($ 76) from 6624 pounds ($ 353.72) per day. The first of the year recorded £ 8,046 ($ 429.65) today.

Sleep in the first 45 days of the year

The yellow metal price hike in Cairo since the beginning of the year was different from other years, as it suffered the impact of the global pandemic in the first 45 days of 2022 before being followed by the repercussions of the Russian war in Ukraine, February, when the Egyptians hurried to store the precious metal as a safe haven.Before the Central Bank of Egypt intervened to limit gold profits and raise interest rates by one percent, the Egyptians again left gold for high-yield savings certificates.

The “Independent Arabia” has been monitoring the price movements of the yellow metal since the first day of the year, as 21 carats at the beginning of last January recorded about 828 pounds per gram, while 24 carats about 946 pounds ($ 50.51) per gram recorded. , and 18 carats about 709 pounds ($ 37.86), while the price of the gold pound reached 6624 pounds ($ 352.76).

Hours before the Russian forces stormed the Ukrainian lands, gold prices were stable at their prices at the beginning of January 2022.

Historical levels after the war

Before 15 days have passed since the outbreak of the war in Europe, gold prices have reached record levels that they have not reached since August (August) 2020 at world and local level, as the price of an ounce of gold worldwide has reached the limits of two exceeded. thousand dollars due to the waves of global inflation that accompanied the war.

Locally, gold prices in Egypt rose by no less than 64 pounds ($ 3.41) on March 8 after the price of a 24-carat gram crossed the 1,000-pound ($ 53.40) mark for the first time and 1 010 pounds ($ 53.93). ) The price of a 21-carat gram jumped from 828 to 884 pounds ($ 44.21), rising 56 pounds ($ 2.99) per gram, and the price of the gold pound was 7,072 pounds ($ 377). 64).

In an extraordinary session, the Monetary Policy Committee of the Central Bank of Egypt on the morning of Monday, March 21, decided to increase interest rates by 100 basis points or 1 percent, asking local banks, especially state-affiliated banks, to announce a savings certificate with a return of 18 percent on. For the first time, in an effort to absorb liquidity in the context of combating inflation that has exceeded the safe limits of the Central Bank, as it jumped from 10.5 per cent in February to 12.1 per cent in February . March, and thereafter until 14.9 last April.

18 percent savings certificate

After local banks issued a savings certificate with a return of 18 percent in about 24 hours, gold prices fell by at least 25 pounds ($ 1.33) per gram of 21-carat gold to 990 pounds ($ 52.86) per gram, compared to £ 1,015 ($ 54.20) before certificates are offered.

The savings certificates have failed to raise more than £ 750 billion ($ 40 billion) as proceeds from the sale, despite the success of the two state-owned banks, The National Bank of Egypt and Misr. of the new high-yield certificate, and gold prices rose again, with an increase of 175 EGP per gram during April last year, an increase of at least 18 per cent, compared with the end of March, and the price of ‘ a gram of 24 carat gold has a new historical level, when it traded 1,145 EGP ($ 61.14) at the end of April, compared to 970 EGP ($ 51.79). ) at the end of March.

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The price of 21 carat gold in Egypt was 1006 pounds ($ 53.72) per gram, on Thursday, 24 carat grams, 1149 pounds ($ 61.35), and 18 carats 863 pounds ($ 46), and the price of the gold pound was 8046 pounds (55 $ 429). ).

Gold traders in Egypt in their interview with The Independent Arabia felt that the current year, especially in its first half, was exceptional due to the successive events during the year.

The head of the Gold Division of the Federation of Egyptian Chambers of Commerce, Hani Milad, said that the current year was the most difficult for the gold trading sector in Egypt, explaining it at a time when the world has not yet got rid of the negative not. consequences of the pandemic, the global economic crisis erupted due to the outbreak of war in Ukraine, which cast its shadow over local markets, and stressed that the gold trade in Egypt was definitely affected by the issuance of the two largest state assets banks with savings certificates at a high rate of return, because it attracted a large segment of gold customers to buy the certificates in search of high returns, the case did not last long, as consumers and investors of gold They have less than a month later returned, at the end of April, again to the gold markets.

Devaluing the pound is the hardest decision

Amr Maghribi, Member of the Gold Division of the Cairo Chamber of Commerce, believes that this year is different from previous years, and emphasized that the matter had been repeated before when local banks issued the Suez Canal Certificate in collaboration with the drilling of the new Suez Canal, as consumers tended to buy the high-yield certificates, and also when he decided The Central Bank of Egypt in 2016 liberalized the exchange rate of the local currency against the US dollar (flotation decision).

He stressed that the most difficult periods were the last six months, when the Central Bank of Egypt decided to reduce the value of the local currency against the green currency by no less than 15 percent, noting that gold traders suffered huge losses due to buying gold from abroad at the high dollar price.

The member of the Cairo Chamber of Commerce added that gold is still a safe trade and preserves the purchase value of money, despite the high returns in banks, the Egyptians do not give up gold at all, whether for investment or for decoration.

On March 21, the Central Bank of Egypt reduced the value of the pound against the dollar by about 15 percent, after deciding to raise interest rates by 100 basis points, or the equivalent of one percent, before raising it again on May 19th. At 200 basis points, or the equivalent of 2 percent, the financial and business community in Cairo is awaiting the Monetary Policy Committee’s decision, Thursday night, to review prices again.

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