{"id":546235,"date":"2022-05-09T04:00:21","date_gmt":"2022-05-09T04:00:21","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/05\/09\/last-nights-talk-shows-talking-heads-mull-whats-driving-demand-for-the-usd\/"},"modified":"2022-05-09T04:00:21","modified_gmt":"2022-05-09T04:00:21","slug":"last-nights-talk-shows-talking-heads-mull-whats-driving-demand-for-the-usd","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/05\/09\/last-nights-talk-shows-talking-heads-mull-whats-driving-demand-for-the-usd\/","title":{"rendered":"Last Night\u2019s Talk Shows: Talking heads mull what\u2019s driving demand for the USD"},"content":{"rendered":"

<\/a> Leading the conversation on yesterday\u2019s talks shows: Saturday\u2019s <\/strong>terrorist attack in Sinai<\/strong>, which met yesterday with condemnation from Arab and world leaders. The attack, which Daesh yesterday claimed responsibility for, resulted in the deaths of at least 11 soldiers. \u0650Al Hayah Al Youm (watch, runtime: 2:39<\/a>), Masaa DMC (watch, runtime: 13:15<\/a>) El Kahera w Nas (watch, runtime: 4:39<\/a>) and Ala Mas\u2019ouleety (watch, runtime: 1:41<\/a>) all covered the story. We have more in this morning\u2019s Diplomacy section, below.<\/p>\n

Are expectations of a fresh devaluation sparking more demand for the USD?<\/strong> More people are rushing to buy the greenback due to \u201crumors\u201d in the market, Ali El Hariri, secretary-general of the Foreign Exchange Bureau Division at the Federation of Egyptian Chambers of Commerce told Kelma Akhira\u2019s Lamees El Hadidi (watch, runtime: 3:57<\/a>). Lamees attributed demand for the USD to speculation that the central bank could further devalue the EGP in the coming days in response to growing pressure caused by rising US rates and fallout from the war in Ukraine.<\/p>\n

The good news?<\/strong> A weaker EGP could help make our exports more competitive abroad, economist and former deputy prime minister Ziad Bahaa El Din told Al Kahera W El Nas\u2019s Hadith Al Qahera (watch: runtime: 14:04<\/a>).<\/p>\n

This isn\u2019t a given, though:<\/strong> Exporters are going to need the support of the government to improve local production and marketing, especially given the downward trend in global growth, he said.<\/p>\n

The bad news:<\/strong> Bahaa El Din doesn\u2019t see the global economy settling anytime soon, estimating that it might take another year or two before conditions normalize.<\/p>\n

The state is going to have to up its subsidy spend next year as global prices rise:<\/strong> The government will raise its subsidy spend by around EGP 35 bn in the coming fiscal year, and increase allocations to the health and education sectors, Yasser Omar, deputy chairperson of the House Budget Committee, told Salet Al Tahrir\u2019s Azza Mostafa (watch, runtime: 3:32<\/a>). \u201cIt\u2019s difficult, because we don\u2019t know when the crisis will end,\u201d Omar said.<\/p>\n

No new taxes will be imposed on citizens<\/strong>, he stressed, adding that the new budget sees higher tax revenues without placing further pressure on the public.<\/p>\n

Also getting a mention on the airwaves last night:<\/strong><\/p>\n