Egypt Deducts 1% from Public Salaries due to Coronavirus

A man wearing a protective face mask in the disinfectant section of a Carrefour hypermarket, amid concerns over COVID-19, in the Cairo suburb of Maadi, Egypt, May 15, 2020. (Reuters)
A man wearing a protective face mask in the disinfectant section of a Carrefour hypermarket, amid concerns over COVID-19, in the Cairo suburb of Maadi, Egypt, May 15, 2020. (Reuters)
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Egypt Deducts 1% from Public Salaries due to Coronavirus

A man wearing a protective face mask in the disinfectant section of a Carrefour hypermarket, amid concerns over COVID-19, in the Cairo suburb of Maadi, Egypt, May 15, 2020. (Reuters)
A man wearing a protective face mask in the disinfectant section of a Carrefour hypermarket, amid concerns over COVID-19, in the Cairo suburb of Maadi, Egypt, May 15, 2020. (Reuters)

Egypt will deduct 1 percent from people’s salaries for 12 months beginning on July 1 to offset the economic repercussions of the coronavirus, according to a draft law approved by the cabinet on Wednesday.

The tax will be imposed across all sectors of the economy in both the public and private sectors for net monthly salaries exceeding EGP2,000 Egyptian pounds, the cabinet said in a statement. A tax of 0.5 percent will be deducted from state pensions.

Those affected economically by the outbreak may be exempted from the tax.

Revenues from the salary tax will be used to support organizations and workers hit by the fallout from the virus, as well as for direct support to some citizens and funding for the medical sector, the cabinet added.

In the same context, Egypt announced that 745 new cases of COVID-19 were recorded Wednesday, in addition to 21 deaths, and the release of 252 coronavirus patients.

Meanwhile, Prime Minister Mostafa Madbouly reiterated that citizens must abide by coronavirus prevention measures imposed by the government during and after the Eid al-Fitr holiday. Precautionary measures to coexist with the coronavirus will remain in place even after life returns to normal, Madbouly added, the most important of which is wearing face masks in public.

Minister of Health and Population of Egypt Hala Zayed announced that 320 hospitals will be receiving patients suffering COVID-19 symptoms.

Patients with mild symptoms will be isolated at home and given masks, disinfectants, and some medicines. “The patient will be followed up on remotely through a new electronic system,” the minister said, adding that the ministry has been implementing the home isolation system for mild cases since May 14."

“The severe cases, which are subdivided into high, extreme, and critical, will be sent to a quarantine hospital,” Zayed continued.



Gold Prices Hold Steady as Investors Await US Fed Policy Cues

A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
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Gold Prices Hold Steady as Investors Await US Fed Policy Cues

A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)

Gold prices remained steady on Wednesday, as investors awaited the US Federal Reserve's decision on interest rates due later in the day, while also focusing on US President Donald Trump's trade policies following his tariff threats.

Spot gold eased 0.2% to $2,758.49 per ounce by 09:55 a.m. ET (1455 GMT), while US gold futures rose 0.3% to $2,775.60, widening the premium over spot gold rates.

The Fed is scheduled to release its latest policy decision and statement at 2 p.m. EST (1900 GMT), with Fed Chair Jerome Powell due to hold a press conference half an hour later to elaborate on the meeting.

The US central bank is widely expected to hold interest rates steady as it awaits further inflation and jobs data and more clarity on the economic impact of Trump's policies before deciding whether to cut borrowing costs again.

"However, the Fed's commentary in regards to the potential for an interest rate cut in the March meeting is going to be in focus," said David Meger, director of metals trading at High Ridge Futures.

Gold prices neared all-time highs last week after Trump called for lower interest rates. Bullion tends to thrive in a low-interest-rate environment as it yields no interest.

Prices, however, retreated sharply on Monday as a sell-off in technology stocks, driven by Chinese AI model DeepSeek, sparked a rush to liquidate bullion to counter losses, according to Reuters.

The sell-off in the stock market seen on Monday may not be over and the unpredictability of Trump's policies is contributing to an increased demand for gold as a safe-haven, said Jim Wyckoff, a senior market analyst at Kitco Metals.

Trump still plans to make good on his promise to issue tariffs on Canada and Mexico, and his policies are widely seen as inflationary.

Elsewhere, spot silver gained 1.7% to $30.92 per ounce, platinum also added 0.5% to $946.45. Palladium was up 0.8% to $962.50.