close

policy

We would like to invite you to continue a survey you have started. ...

Do you trust your insurer ?

Strongly agree
Agree
Disagree
Strongly disagree
Insurance provides peace of mind
Insurance is purchased only when compulsory
Terms and Conditions (small print) are clear and easily accessible
Insurance jargon (language) stands in the way of fully understanding each policy
Insurance companies try their best to uphold the details of the policy without cutting corners
Reducing risk, cutting costs and profits are more important to an insurance company than the customer
Insurance companies in the region are as professional as in other more developed markets
Gender
Age group
Do you feel your insurance provider works in your interest?
Have you had a rejected claim that you feel was not justified?
Do you trust your insurance provider?
Our Network

Register for our free newsletter

 
 
Latest News

Egypt pound weakens, some see cbank buying dollars

Bank seen building currency reserves ahead of elections.

0

October 20, 2010 8:41 by



The Egyptian pound traded as low as 5.7360 to the dollar on Tuesday, its weakest in three and a half years, with analysts saying the fall may be due to the central bank stepping up its buying of foreign currency.

The analysts said the central bank appeared to want a weaker pound to make Egyptian exports more competitive and to build reserves to hedge against investor concerns about Egypt’s future leadership as elections loom.

“We think that the central bank is actively purchasing foreign currency and trying to weaken the pound,” said a strategist at BNP Paribas, who asked not to be named.

Currency’s pressures have been building around the globe with low interest rates in the West leading investors to pour cash into emerging markets, driving up their currencies and potentially hurting their economies.

Egypt’s official foreign reserves have climbed steadily, reaching $35.53 billion at the end of September, a new high. But analysts say the bank also seemed to be building up separate funds that did not immediately appear in official figures.

“If you look at those (hidden reserve) figures you can see those reserves increasing at a higher rate than the headline official figure, which indicates they are purchasing currency in the market,” the strategist added.

The pound was also tracking the euro, which has been sliding against the dollar , one trader said.

Egypt has scheduled a parliamentary election in November and a presidential poll in late 2011.

President Hosni Mubarak’s ruling party is widely expected to win a big majority in parliament again. But the vote is being watched to see how much space is given to the opposition, which regularly complains about voting abuses.

Mubarak, 82, has not said if he will run for office again. Rumours about his health have added to uncertainty, although the president has resumed his schedule of meetings and trips.

(Reporting by Tom Pfeiffer and Patrick Werr; Editing by Hugh Lawson)



0

Tags: , , , ,

Leave a Comment