Egypt: Stores Adapt to COVID-19 Restrictions to Compensate Losses

 An Egyptian citizen watches TV broadcasting the speech of Egypt's Prime Minister Mostafa Madbouly, at an almost empty coffee shop, following the government instructions with immediate effect as Egypt ramps up its efforts to slow down the spread of the coronavirus disease (COVID-19) in Cairo, Egypt, March 24, 2020. REUTERS/Mohamed Abd El Ghany
An Egyptian citizen watches TV broadcasting the speech of Egypt's Prime Minister Mostafa Madbouly, at an almost empty coffee shop, following the government instructions with immediate effect as Egypt ramps up its efforts to slow down the spread of the coronavirus disease (COVID-19) in Cairo, Egypt, March 24, 2020. REUTERS/Mohamed Abd El Ghany
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Egypt: Stores Adapt to COVID-19 Restrictions to Compensate Losses

 An Egyptian citizen watches TV broadcasting the speech of Egypt's Prime Minister Mostafa Madbouly, at an almost empty coffee shop, following the government instructions with immediate effect as Egypt ramps up its efforts to slow down the spread of the coronavirus disease (COVID-19) in Cairo, Egypt, March 24, 2020. REUTERS/Mohamed Abd El Ghany
An Egyptian citizen watches TV broadcasting the speech of Egypt's Prime Minister Mostafa Madbouly, at an almost empty coffee shop, following the government instructions with immediate effect as Egypt ramps up its efforts to slow down the spread of the coronavirus disease (COVID-19) in Cairo, Egypt, March 24, 2020. REUTERS/Mohamed Abd El Ghany

Medhat Ibrahim, 33, decided to close his phone accessories shop in Giza (West Cairo) and move to another cheaper place in his village, after he was unable to settle the accumulated debts and the monthly rent of 4,000 EGP.

By adapting to the closure decisions and precautionary measures imposed by the government authorities to limit the spread of the new coronavirus, Ibrahim tries to compensate for his losses and achieve a profit margin, which would enable him to cater for his family, pay the monthly rent of the store along with the electricity bill.

“The maintenance of mobile phones and selling new devices, along with their accessories, is not essential during the current period in which people are interested in securing their food and purchasing needs in the first place,” Ibrahim told Asharq Al-Awsat.

Before the outbreak of COVID-19, Egypt was famous for the continued opening of some of its malls, shops, nightclubs and cafes, especially in the Egyptian capital, until the early morning hours, despite the government’s recommendations for the necessity of an early closure in order to save electricity and provide rest for the population like other countries.

Last March, the Egyptian authorities decided to close all restaurants, night clubs and health centers, swimming pools, and cafes, as well as museums, tourist and archaeological sites.

In mid-June, the Egyptian authorities allowed to extend the period of work for stores for one hour per day, with the continued closure of cafes, night clubs, cinemas, mosques and churches, excluding grocery stores, pharmacies and bakeries.

The pandemic has slowed many Egyptian economic activities, especially the tourism and industry sectors, as well as the wholesale and retail trade sectors.

According to Egyptian Finance Minister Mohamed Maiit, the COVID-19 pandemic affected the country’s revenues and expenditures. In a telephone interview with Al-Arabiya channel on Monday, the minister said that the virus reduced by 125 billion EGP, the expected revenues for the state budget in the current fiscal year.

Arafa Saeed, 34, owner of a hardware store in Cairo, told Asharq Al-Awsat: “Before the outbreak of the virus, wholesale stores in the mobile market in Al-Attar Street in central Cairo maintained a weekly vacation each Sunday; but now the situation changed completely as all stores canceled their weekly leave in order to compensate for their losses.”



Gold Hovers Near Record Levels, Fed Meeting in Focus

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 Hovers Near Record Levels, Fed Meeting in Focus

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)

Safe-haven gold firmed on Monday, trading near an all-time high scaled in the previous session, while the market's focus shifted to the US Federal Reserve's meeting this week.

Spot gold added 0.5% to $2,997.84 an ounce, as of 1141 GMT. Prices hit a record high of $3,004.86 on Friday amid geopolitical uncertainty.

US gold futures eased 0.2% to $3,006.10.

"We expect prices to edge higher on a similar trajectory with dips bought as FOMO (fear of missing out) trades support the market," said Ross Norman, an independent analyst, Reuters reported.

"In short, we would be surprised not to see the $3,150 level in the coming months much as we had forecasted - albeit much quicker than we had anticipated."

US Treasury Secretary Scott Bessent said on Sunday that there are "no guarantees" there will not be a recession in the country, adding to investor worries of an impending economic downturn due to the President's trade policies.

"Short term, we acknowledge that the market has drifted into technical overbought territory, but think the prevailing mood among investors remains one of caution for US equities and confidence in gold," UBS said in a note.

US stock markets closed down sharply last week amid mounting uncertainties arising from tariff threats against the biggest US trading partners.

Markets now await the Fed's two-day monetary policy meeting that ends on Wednesday for clues on the interest rate trajectory. The Fed is widely expected to keep rates on hold after having reduced them by 100 basis points since September.

Bullion tends to do well in a low interest rate environment and is also seen as a hedge against geopolitical turmoil, economic uncertainties, and inflation.

Spot silver was flat at $33.79 an ounce, while platinum rose 0.6% to $999.20, and palladium gained 0.9% to $973.50.