Egypt: fear of a devaluation of the pound causes a gold rush

The gram of 21-carat gold broke a record in Egypt, approaching the equivalent of 60 euros, or 50% of the minimum wage.

(Illustrative image) REUTERS - DENIS BALIBOUSE

Text by: RFI Follow

1 min

In Egypt, the fear of a new devaluation of the pound caused a veritable gold rush.

The gram of 21-carat gold broke the record in Egypt by approaching the equivalent of 60 euros, or 50% of the minimum wage.

Only the arrival of Eid and the closing of stores slowed down the frenzy.

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With our correspondent in Cairo

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At 9 am, in front of the Bajocchi jewelry store, the oldest in Egypt, there were people waiting impatiently for the opening.

They wanted to buy gold and had cash of up to 10,000 euros.

Unheard of explains the Bajocchi father and son to us.

On the site of Bullion Trading Center, Egypt's gold sales giant, everything is out of stock.

From the small medal to the one kilo gold ingot.

According to Raoul Bajocchi, this gold rush aims to prevent a new devaluation.

The pound that should still lose its value

The pound which has already lost, a month ago, 15% of its value against the dollar could lose 20% more.

And no longer a question of seeking refuge in the American currency, the government having tightened the rules of the foreign exchange market and carried out preventive arrests in the middle of the black market.

Meanwhile, a third of Egyptians who live below the poverty line have to make do with prices that have risen 25% in one month.

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• Egypt

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• Currencies