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.”



Dollar Hobbled by Economic Worries; Euro Remains in Favor

US dollar drifted within a tight range on Monday, pressured by lower Treasury yields - Reuters
US dollar drifted within a tight range on Monday, pressured by lower Treasury yields - Reuters
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Dollar Hobbled by Economic Worries; Euro Remains in Favor

US dollar drifted within a tight range on Monday, pressured by lower Treasury yields - Reuters
US dollar drifted within a tight range on Monday, pressured by lower Treasury yields - Reuters

The dollar hovered near a five-month low against major peers on Monday, bruised by President Donald Trump's erratic trade policies and soft economic data, at a time when other currencies, including the euro, benefit from domestic drivers.

The euro was last at $1.0905, up 0.2% on the day, and heading back towards the $1.0947 it hit last week, its highest since October 11.

The Japanese yen was also marginally stronger on the day at 148.48 per dollar, again after hitting its strongest in five months last week at 146.5 to the dollar.

That left the dollar index, which measures the US currency against its six major counterparts, at 103.5, just off its five-month trough of 103.21 reached last Tuesday, Reuters reported.

Currency markets have undergone a shift in recent months, as traders re-evaluate their initial expectations that Trump's economic policies would both support the dollar and cause other currencies to weaken.

In fact the reverse has happened, and analysts at Societe Generale said on Monday that they had changed their currency forecasts "to reflect Germany's planned fiscal changes, the US economy's self-inflicted (relative) fragility, and Japan’s escape from deflation".

They see the euro at $1.13 by year-end and the yen at 139 per dollar.