Lotfy Moneeb: “The ‘Goldsmith Dollar’ is a misleading term… Local gold prices are based on the actual replacement cost.”

Engineer Lotfy Moneeb, Vice President of the General Chamber of Gold and Jewelry, stated that the term "Goldsmith Dollar" is inaccurate and reflects a misunderstanding of how gold pricing works in the local market. He explained that gold prices in Egypt are not determined solely based on the dollar exchange rate, but rather take into account a range of factors and costs associated with importation and trading.

He clarified that local gold pricing is not simply calculated by multiplying the global gold price by the dollar exchange rate announced by the Central Bank. It also includes several additional costs, such as banking fees and currency procurement charges. While these costs were minimal under normal circumstances due to the availability of foreign currency, they have risen recently, with currency procurement fees alone reaching around 2% in banks, in addition to shipping, insurance, and government-imposed fees.

Moneeb added that relying solely on the dollar exchange rate to explain the prices of imported goods is inaccurate. For example, if the dollar were the only determining factor, telecommunications companies like Vodafone would sell an iPhone, priced at $999 in the United States, for approximately 84,000 EGP—rather than around 52,000 EGP according to the official bank rate. This demonstrates that the pricing of imported goods depends on multiple factors and costs, not just the official exchange rate.

He emphasized that local gold prices are primarily based on the so-called actual replacement cost, which includes the global gold price, the official dollar rate, plus shipping, insurance, taxes, fees, and profit margins.

Moneeb concluded that the concept of the "Goldsmith Dollar" is incorrect, and that local gold prices are determined by the global price of gold and the official bank dollar rate, combined with various costs and expenses, not the dollar rate alone.