I am wondering how other expats view and are coping with the catastrophic fall in the value of the Egyptian pound.
For those of us lucky enough to derive our income from "hard-currency", such as Pounds Sterling, dollars and euros, one might think that we are on to a good thing, because we are getting so many more Egyptian pounds for our buck or whatever. However, it seems to be a case that the Egyptian way of dealing with the matter is to hike most prices up by 100%! Quite apart from cigarettes and sugar which are in short supply, if bought on on the open market,, a great many other prices have gone sky high.
For instance, I went to pay for the berthing of my little fishing boat recently which had been 700 LE per month and was informed that this is now been increased to 1400 LE. I checked around and found that I wasn't being discriminated against as a foreigner, because every one else's parking spot had been increased by the same amount - 100%.
I asked the attendant whether his wages I had gone up by 100% and he laughed. What are these people doing? How are Egyptians managing now?
Some of us and have considerable investments in the banks in Egypt and because of the high interest rates given by many of them, we are (or were ), able to derive an income from these investments sufficient to enable us to live off the interest and not have to dig into our capital too much!
All of this seems to have changed now and the higher interest now being offered by the banks has done very little to offset price rises for produce and services.
Also, the hard currently which I used to buy the bonds with when I first came here seven years ago , has now depreciated in real terms by 50%. If I wanted to convert the sum back into dollars , I would lose well over $80,000. . That is not peanuts . Is anyone else in the same position and if you are, how do you see the situation.
The property market also seems to be in chaos .Some people who were selling their flats for 500,000 Egyptian pounds now I have put the price up to 1,000,000.Many expats are asking for payment only in "hard currently". Apparently if you sell your flat here for Egyptian pounds it is extremely difficult to transfer the money out of Egypt in hard currency
Fall of the Egyptian pound
As you said the expats who have income with hard currencies will handle it well, but I am really worried about Egyptians. The salaries didn't go up and the prices are so high! I wonder what could help this situation. More tourists? Bigger export and limited import?
Sugar and cigarettes limitations maybe at least will do some good for the health of people here, but expensive food and medicines ....
Unfortunately, there is not going to be an increase in tourism which will benefited the economy, especially Hurghada, where most of the merchants stand outside their shops waiting for a customer. The reason for this is that firstly , Russia is not flying tourists direct to iEgypt now and this is not going to happen for many months yet because of the economic situation prevailing in Russia. It is in the interests of Russia to keep people at home and to spend their money in Russia, so whatever the politicians say about bad security in Egypt is all lies and making it difficult to come to is a political ploy to keep them away.
Also Egyptians are not helping themselves at all. People come to Egypt because it is cheap and putting prices up 100%, when tourist's 'currences have also depreciated is not going to do anything to attract tourists to Egypt. It will be different if prices went up 20% or even 25% but 100% is ridiculous. Egyptians are greedy people and do not look at the long-term effect and the effect on their country..
Great analysis except for the word greedy.
Yes , I regret using that word now. I withdraw it . It should read
"Egyptian people have reacted too hastily "
Sounds better
The high rate of d currency is affecting everyone. Especially we foreigners working here in Egypt. But I pray God help us where ever we are all in need.
Jusy, it was interesting to hear from someone who is working in Egypt. Has your employer given you any wage increase to compensate for the massive inflation which is taking place.
I would also like to hear from any expat who is selling their property. For instance if you were asking 500,000 LE for your property before the Egyptian pound nosedived, are you now asking (say), 1,000,000 LE to compensate? May be expats are just accepting euros or dollars now? So, we could be in a position where Egyptians are selling their properties for Egyptian pounds only – whether or not they have put the prices up, and foreigners are selling for hard currently only. Everything seems to have gone mad
My salary didn't increase. I was collecting salary at d rate of dollar b4. By now am collecting bellow my salary. It decrease . And d boss said, if am not satisfy with it, am free to go. So it's like a hell
The currency floatation plus the huge lack of tourists is making people act crazy - perhaps crazier than usual in Egypt. I don't live there but my Mum does and she said the attitude now is just put your head down and work your butt off until this is over. Egypt is such a great place I really hope it puts through!
In anycase, my Mum is in exactly the same boat as you Rikkipoo. Invested hard currency into EGP because she was living off the interest and then the currency fell out of the sky and any savings made have been halved and she has lost a load of cash. Oops. I guess for now all one can do is wait it out. There are projects popping up all over the place - gold mining, desert oases planned for luxury accommodation (not as if that hasn't already been tried...) the Suez canal development for Egyptians and the fact that investors are pulled into the market with the currency being so low. The people of Egypt (you included it seems) are suffering from price hikes but the corporations are doing business without the doubling in prices I bet. The little guy always gets got eh. And i am a daughter of a little guy who is trying her best to wade her way through this mess currently - hence the bank account story...
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