In an interview with "Asharq," Egyptian billionaire Naguib Sawiris warned about the prolonged high interest rates in Egypt, stressing that they will have a negative long-term impact.
Egypt’s overnight deposit rate is currently 27.25%, while the lending rate is 28.25%, and the central bank’s main operation rate stands at 27.75%. In an extraordinary meeting in March, the Central Bank raised interest rates by 600 basis points to curb inflation, with a total rate increase of 1,900 basis points since March 2022.
Speaking to "Asharq" on the sidelines of the American Chamber of Commerce meeting in Cairo on Sunday, Sawiris added that "gold remains a good investment opportunity," predicting a continued rise in its prices "especially as supply starts to decline amidst increasing demand," as he stated.
According to iSagha platform data, gold has gained $596, or 29%, since the beginning of the year, driven by expectations that the U.S. Federal Reserve will end its monetary tightening cycle, increased central bank purchases, and strong demand for safe-haven assets due to conflicts in the Middle East.
Gold prices on the exchange rose by about 1.4% at the end of the week, with the ounce closing at $2,658 after touching an all-time high of $2,685.
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