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Egyptian pound

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  • Ihsaan
    TDF Member
    • Jan 2014
    • 179

    Egyptian pound

    Following the decision by Egypt to unpeg it's currency on Thursday, the Egyptian pound has dropped by 50%. I'm thinking of a way to take advantage of this but all the dive centres' websites show their prices in £/€/$US which would negate any advantage of the currency drop. Apparently the ministry of tourism have declared that all hotels and dive centres are no longer allowed to take payment in EGP, and have to accept EURO, GBP or USD only as the purpose was to increase their foreign reserves. Can anyone think of a legit way to make a saving?
  • Georgina
    Established TDF Member
    • Dec 2012
    • 1278

    #2
    Further news:
    Less than 24 hours after the Egyptian Pound was floated by the Central Bank of Egypt, the government issued a decision raising prices of fuel, diesel, butane gas, and natural gas by up to 47 percent. The increase in prices is a result of the Egyptian government reducing subsidies on gas products, which have historically
    ..........o ><)))*>
    .......O o
    . ><)))*>...o
    Georgina

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    • smileydiver
      Not short, just concentrated awesome ;)
      • Dec 2012
      • 4408

      #3
      Very interesting. Would this apply to local restaurants and bars etc too? I normally pay for diving and hotel in Euros in Sharm but pay for drinks and food in LE. Is that changing?
      The sea, once it casts its spell, holds one in its net of wonder forever - Jacques Cousteau

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      • Turbanator
        Established TDF Member
        • Dec 2012
        • 870

        #4
        I don't really understand these things but it seems that the centers/bars/restaurants will see an immediate 30% increase in profits as presumably their staff, food and water are paid for in LE.
        Follow the money in a case like this and it seems that the best place to be is converting USD,GBP and Euros to LE. These converters wouldn't be government controlled, would they?

        Sent from my Z1 using Tapatalk
        Last edited by Turbanator; 06-11-2016, 03:31 PM.
        'I saw some purple slug things on the Scylla, so I squished them' - #MiniBodger

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        • Ihsaan
          TDF Member
          • Jan 2014
          • 179

          #5
          I assumed that they would use the devaluation to boost their tourism industry but if you can't pay in LE then there's no saving.

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          • Georgina
            Established TDF Member
            • Dec 2012
            • 1278

            #6
            We have also had a new VAT to replace the sales tax:


            and earlier this year a rise in import duty on goods:
            Under Egypt's latest measures, higher import taxes on hundreds of imported products will be imposed on February 1 in an effort to protect local industries.


            Restaurant owners are talking about raising salaries so for sure prices will go up. They take Egyptian pounds.

            All my savings in Egyptian pounds in the bank has devalued. Though it was earning around 12% interest. I have been using my debit card to withdraw my UK cash that earns 0% interest but I can take advantage of the higher exchange rate now. I have no idea which is best to spend.
            ..........o ><)))*>
            .......O o
            . ><)))*>...o
            Georgina

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            • Liquidity
              Same Planet - Different World
              • Jul 2015
              • 122

              #7
              I'm there in a couple of weeks for 10 days on a family & diving holiday. Was going to change my currency there as was told you always get a better rate. But seems redundant now as we are AI in the hotel complex.

              Now thinking of just taking a fat role of fivers with me for tips etc... Have they seen the new plastic fiver over there yet?

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