Taxi meters will now start at EGP 4 instead of EGP 3
Ayat Al Tawy , Tuesday 22 Nov 2016
Cairo’s governor has increased the tariffs of the city’s white taxis by 25 percent in the wake of hikes in fuel prices earlier this month, part of a package of government economic reforms.
Taxi meters will now start from EGP 4 instead of EGP 3 for a one kilometer journey, with each subsequent kilometer priced at EGP 1.75, up 35 piastres from the previous rate of EGP 1.40.
The new tariff increases “have been introduced following final approval from the cabinet," read a statement by Governor Atef Abdel Hamid released on Tuesday.
Cabs in the Cairo area had begun operating under the new rates on Monday.
"All prices are going up like crazy and our [fares] have remained the same. That was unfair," a taxi driver in downtown Cairo told Ahram Online.
A committee of experts which imposed the new increases aimed at fair prices for both drivers and passengers, Cairo governorate official Mohamed El-Sheikh said in comments carried by state news agency MENA.
The last time taxi tariffs were increased was in June 2014, when the starting kilometre went up from EGP 2.5 and the subsequent kilometres from EGP 1.25.
White cabs were first introduced in the capital in 2009 to replace rickety black-and-white vehicles which operated without working meters.
Earlier this month, Egypt reduced subsidies of petroleum products leading to an increase in prices at the pump. Lower grade petrol increased by nearly 50 percent to EGP 2.35 a litre, while higher octane fuel rose by over a third to EGP 3.5 per litre.
Natural gas used in vehicles also went up by some 45 percent to EGP1.6 per litre.
The hikes in prices of petroleum products came on the same day the country took the major step of floating the Egyptian pound in hopes of addressing a dollar crunch.
The pound has since slid from EGP8.8 to the dollar to approximately EGP17.5.
The resulting rise in prices has caused concern among many Egyptians.
The Egyptian pound depreciated further against the dollar in some banks mid-Tuesday, reaching a selling price of 19.75 compared to between 18.95 and 19.15 on Monday.
The dollar’s highest selling prices were seen at the Egyptian Gulf Bank and Misr Iran Development Bank. Meanwhile, government-owned banks; Banque Misr, Al-Ahli Bank and Banque du Caire sold dollars at the lower rate of LE19.2.
On Monday, the Egyptian pound declined by more than LE0.8 to the dollar in banks after being stable for three days.
A banker told Reuters that the reason behind the decline of the Egyptian pound is an increase in dollar requests towards the end of the year as companies are "closing their books or seeking to repatriate profits."
Senior Economist at Arqaam Capital Reham al-Desouky said that a decline in the Egyptian pound’s exchange rate against the dollar will depend on the inflows of foreign currency “by the beginning of the new year” in the form of investments in treasury bonds and stocks.
Egypt floated the pound on November 3 and raised interest rates by 300 basis points in a dramatic move welcomed by businesses as the key to unlocking investment.
Egypt's dollar peg had drained the central bank's foreign reserves, which have been hit hard by reduced foreign investment following political turmoil in the past few years, forcing the bank to impose capital controls and ration dollars, a situation that made the black market for the foreign currency thrive.
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Governor of Cairo Approves a Raise in the White Taxi Tariff htt
p://www.cairoscene.com/Buzz/Governor-of-Cairo-Approves-a-Raise-in-the-White-Taxi-Tariff @Cairosceneさんから
n keeping up with the surge in prices Egypt has been experiencing, especially in the aftermath of the late lift of fuel subsidies and the free floatation of the Egyptian pound, the Governor of Cairo, Atef Abdel Hamid, approved a new tariff for the white taxi on Monday the 21st, according to Al Bawaba.
The new tariff would have the metres start at 4 EGP instead of the previous 3 EGP, and the per kilometre price will be set at 1.75 EGP instead of 1.40 EGP, which is an increase of 35 piasters per kilometre. The waiting rate will also increase by 14 piasters to stand at 39 piasters per minute (14 EGP per hour.)
The new tariff is currently being gradually activated among taxis, where some have already started operating by it.
Egypt's Finance Minister announces they will fix the dollar exchange rate to 18.5 EGP for importers, and promises to revisit and adjust the rate on a monthly basis at the end of February.
Egyptian importers have been struggling to maintain their operations since the central bank decided to free float Egypt’s currency in November. In an effort to keep the Egyptian pound flexible, and yet predictable for importers, Egypt’s Finance Minister announced that Egypt will fix the customs exchange rate at 18.5 pounds per dollar until the end of February.
According to the state news agency MENA, Egypt’s Finance Minister has fixed the customs exchange rate at 18.5 EGP per dollar until the end of February, promising to review and adjust the rate each month. Egypt abandoned its peg of 8.8 EGP to the U.S dollar in November to secure a $12 billion loan from the International Monetary Fund.
Since then, Egyptian importers have been struggling to deal with their dollar debts after the value of the Egyptian pound was halved, making it increasingly difficult to price their imported goods in Egyptian pounds pleading the government to intervene and fix the customs dollar exchange rate. However, many importers believe the new measure falls short of the help they require as Ahmed Shiha, head of the importers division at the Cairo Chamber of Commerce, tells Reuters that, "They are taking the average rate at the banks and the dollar may weaken during that month. We were expecting the rate to be at 10 pounds per dollar."
Egypt's Big Macs Are Officially the Cheapest in the World htt
p://www.cairoscene.com/Buzz/Egypt-s-Big-Macs-Are-Officially-the-Cheapest-in-the-World @cairosceneさんから
The price of a Big Mac varies greatly depending on which country you're in when you make your order. If you're in the US, home of the Big Mac, you're looking at a 5 dollar bill. Egypt, however, offers the cheapest Big Mac in the world, costing only $1.46, The Telegraph reports.
Egypt, along with Ukraine, Malaysia, and South Africa are the only countries that offer a Big Mac for under $2. The world's most expensive Big Mac is found in Sweden, where it sets you back $6.35.
Since 2016, Egypt moved 6 spots down the Big Mac Index (yes, that's a thing), replacing Venezuela - where you could get a Big Mac for as low as 60 cents around the same time last year - as the country with the cheapest Big Mac. At $3.1 a pop, Saudi Arabia, the only other Arab country featured on the Big Mac Index, makes the list as the 12th cheapest country for the fast food delight.
The new price comes after the devaluation of the Egyptian pound last November, which cost the pound 40% of its value against the US dollar.
The Central Bank of Egypt floated the pound and raised key interest rates in November as part of a set of reforms to revive the country's flagging economy
Ahram Online , Saturday 11 Feb 2017
Egypt's annual headline inflation rose to 29.6 percent in January from 24.3 percent in the previous month, hitting its highest level after the country freely floated its currency against the dollar in November, state statistics body CAPMAS announced Saturday.
Annual headline inflation was registered at 10.7 percent in January 2016.
In an emailed statement today, CAPMAS attributed the spike in inflation to price hikes in basic goods and services.
The cost of foodstuffs and beverages rose by seven percent in January 2017 compared to November 2016 and 38.6 percent year-on-year.
Egypt's annual core inflation registered 25.86 percent in December from 20.73 percent in November, the Central Bank of Egypt (CBE) announced in early January.
The core consumer price index that the CBE uses to measure the level of prices – after excluding volatile cost commodities such fruits and vegetables – started to hit double-digits in May 2016, when it recorded a seven-year-high rate of 12.2 percent.
The CBE decided in early November to float the pound against the dollar and raise key interest rates as part of a set of reforms aiming to revive the country's flagging economy.
In July 2014, Egypt embarked on a fiscal reform programme in an attempt to curb a growing state budget deficit — now 12.2 percent of the GDP — by cutting subsidies and introducing new taxes, including the value added tax.
Egypt's economy has been struggling since the 2011 uprising, with a sharp drop in tourism and foreign investment, two main sources of hard currency for the import-dependent country.
The Central Bank of Egypt announced on Monday that the country's core inflation soared to a record 30.86 percent in January from 25.86 percent the previous month, as consumers continue to be hit with prices upsets after the country's flotation of its currency and increase in fuel prices.
According to the CBE, the monthly rate increased by 5.0 percent in comparison to a 4.35 percent increase last December.
The US dollar has strengthened against the Egyptian pound for first time in almost a month to register an average of EGP 18 on Tuesday, according to central bank data.
In early February, the official exchange rate of the pound against the greenback strengthened from EGP 18.5 to EGP 15.7 in the middle of last month.
Accordingly, Egypt's finance ministry lowered the customs dollar twice last month to reach an exchange rate of EGP 16 and then down to EGP 15.75 to reflect the leap in the Egyptian pound's value against the greenback.
The ministry has stated that it would revise the exchange rate of the customs dollar again in the coming days.
In January, the customs dollar registered EGP 18.5 after the pound's value weakened significantly, reaching EGP 19 against the dollar only one month after the Central Bank of Egypt (CBE) decided to float the pound.
The CBE freely floated the pound from its fixed EGP 8.88 rate against the dollar in early November as part of a set of economic reforms to alleviate Egypt’s flagging economy.
Egypt’s foreign reserves reached $26.3 billion by the end of January 2017, up from around $16.5 billion in January 2016, the central bank said.
