Chagrin in markets as prices rise with falling pound
Market street in Cairo - Youm7

CAIRO: Prices in markets for general goods have risen between 15 and 25 percent, vendors in Cairo Markets told Youm7 Wednesday, days after the Central Bank of Egypt allowed the pound to depreciate for the fourth time this year, to a record low of 7.93 EGP per U.S. dollar.

“The decision [to depreciate the pound] ruined our business,” Khaled Khamis, who sells auto parts, told Youm7, adding that since many parts come from overseas, he expected a sharp rise in prices.

A bumper sticker seller, Mohamed, said that his overhead costs had increased 25 percent.

A fruit stand in Talaat Harb market in Cairo- Youm7

A fruit stand in Talaat Harb market in Cairo- Youm7

Hany Fattouh, a fruit trader, explained that the price of imported crops will increase to varying degrees. “We were surprised during the past few days there is high in imported fruit prices including peaches, which went up from 15 to 20 pounds per kilo. Pears went up from 15 to 18 pounds, and the price increase is passed on to the customer,” he said, adding that sales have fallen by half.

This is the lowest official the local currency has been allowed to hit since the central bank began its auctions in December 2012, amid expectations of an extended slip in the coming days.

On Tuesday, the dollar was sold at 8.03 EGP at banks, and 8.08 EGP at exchange bureau, as the CBE gives permission to trade dollars up to 0.10 EGP and 0.15 EGP above or below the official rate at banks and exchange bureaus, respectively.

Recommend to friends

Leave a comment