Egypt Remittances Record $8.1 Billion in Q1 of the Fiscal Year 2021/2022💲
The Economic Research Sector at the CBE said that remittances rose 1.5% year-over-year in Q1 of the 2021/2022 fiscal year, to record about $8.1 billion.
What are Remittances🤨 In economic terms, remittances are funds transferred from migrants to their home country, which helps in growing the home country’s economy. An example of remittance is a sum of money sent back to the home country for food, clothing, etc.
More Details🧐 The total remittances from January to September 2021 were about $24 billion, an increase of about 1.9 billion dollars compared to the same period last year. It’s important to note that Egypt’s calendar year starts on the first of January, but its fiscal year starts on the first of July.
Why is this Important🤔 Remittances increase both the receiving household’s income & the foreign exchange reserves of the home country.
New Private Sector Minimum Wage to Come into Effect January 1st⏲
The Ministry of Planning & Economic Development announced yesterday that the new EGP 2,400 minimum wage for the private sector will be effective as of January 1st, 2022.
More Details🧐 Over three thousand companies will get a six-week push on implementing the new minimum wage after they filed for exemptions. Although it’s still unclear whether these companies will have to eventually pay their employees back.
Why is this Important🤔 Minister of Planning & Economic Development Dr. Hala Al Saeed stated that the National Council for Wages looked to achieve a balance between workers’ rights to an appropriate wage while taking into account the difficult economic conditions some sectors are going through.
Heliopolis Housing Agrees to Sell Zahraa Maadi Plot of Land in New Heliopolis🤝
Zahraa Maadi (ZMID) signed a contract with Heliopolis Housing (HELI) to purchase a plot of land in the ninth district of New Heliopolis.
More Details🧐 The land has an area of 31.2 thousand square meters, at a price of EGP 3,470/square meter.
A 10% down payment of the total value was paid, with the rest of the amount to be paid in quarterly installments over 5 years starting from March 2022 to 2026.
Why is this Important🤔 It’s worth noting that as of yesterday & for a period of one month, daily price movements on ZMID are capped at ±5%, with no temporary suspension limit during the session. ZMID closed 5% in the green in yesterday’s trading session.
What else is Clapping👏
U.S. Government to Ship Free COVID Tests to Avoid Omicron Lockdowns
Pioneers Properties (PRDC) Cuts Stake in El Kahera Housing (ELKA) from 76.5% to 70%
SODIC Invites New Owners to Elect a Board of Directors
Turkish Lira Rebounds from All-Time Low💱
The Turkish Lira (TRY) rose as much as 25% in Monday trading & as much as 15% in Tuesday trading. It stood at x/U.S. Dollar as of 5 PM Cairo time in yesterday’s trading.
Backstory🔙 Turkey has been in a debt & currency crisis since 2018. The country’s inflation rate has been in the double digits since 2017, & most recently recorded an annual inflation rate of 21.31% in November 2021.
Below is the U.S. Dollar/TRY foreign exchange spot rate for the past 10 days, where you can clearly see how volatile it’s been.
Why has this been Happening🤨 Most experts believe that President Erdogan’s unusual stance on inflation is what’s behind the sharp decrease in the TRY. He has long argued that high interest rates cause inflation, contrary to what economists generally say: that increasing rates will drive down prices. His views have caused the TRY’s value to drop steadily over the past five years.
More Details🧐 The TRY has been especially much more volatile in the past few weeks. The currency hit an all-time low earlier this week of 18.36/U.S. Dollar before rebounding to as high as 11.09/U.S. Dollar, a 60% loss of its value against the U.S. Dollar this year.
Despite the TRY’s gains, its strength is still significantly weaker than January 2021, when 7.40 TRY were enough to buy a U.S. Dollar.
Why is this Important🤔 Prices of basic goods, as well as rent, have skyrocketed & many Turks are struggling to make ends meet. Imports & fuel prices have also soared in Turkey, a country that relies heavily on imported raw materials.
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