05:00 pm
Friday, March 24, 2023
I wrote – Sherine Salah:
Analysts in the investment sector believe that the best investment tools at the present time to preserve the value of money in light of the successive depreciation of the pound is investing in real estate and buying shares in the stock exchange for companies that have sources of income in dollars, despite the large jumps in gold prices.
Analysts explained that real estate is now the tool that did not rise in significant values compared to other investment tools such as gold and others, and it can be purchased at the present time.
The value of the dollar decreased 3 times in a row in one year from March 2021 until this March, and the price of the dollar against the pound rose within a year to 30.94 pounds compared to 15.76 pounds, an increase of 96.3%, according to Central Bank data.
The price of gold jumped within a year, coinciding with the rise in the price of the dollar against the pound by 125.3%, to record the price of a gram today, March 20, 2023, to exceed 2000 pounds, compared to 892 pounds on the same day of the previous year.
The best investment tool
Marwan Younis, Executive Partner and Head of Asset Management at Zilla Capital, believes that the best investment tools at the present time to keep the value of money as it is without declining every time the local currency depreciates is investing in stock exchange shares, especially in companies that have revenues in dollars, Such as cement companies, iron companies, and others.
Younis said, to Masrawy, that “to take the decision to invest money, the individual always searches for a way to compensate him for the declines that occurred in the currency in the last period,” and gave an example that companies such as Abu Qir Fertilizers and Alexandria for handling containers and goods were able to compensate for the depreciation of the local currency through the price difference. Between the dollar and the pound resulting from export operations.
According to Yunus, other investment tools such as deposits in banks, “the person at the end of the deposit does not know when it is due, how much will the value of the deposit be after the exchange rate fluctuations during the last period.”
The other tool, in Younes’ view, is to invest in real estate, especially buying real estate in coastal areas and cities of the Red Sea, and it is possible to obtain returns in dollars, especially when renting them to tourists, “Looking at this market at the present time, you see that it is currently developing.”
Ahmed Moaty, CEO of iMarkets, a financial advisory company in Egypt, agreed that the best investment tool that the public is currently advising is buying real estate, especially since real estate did not rise like other tools and inflation affected it to a lesser extent.
The annual urban inflation rate jumped to 31.9% in February, compared to 25.8% in January, according to a statement from the Central Agency for Public Mobilization and Statistics.
The inflation figures were higher than analysts’ expectations, as analysts who spoke to Masrawy estimated that the annual inflation rate in Egyptian cities would rise to between 27 and 30% in February, compared to 25.8% in January.
He explained that most real estate developers, in light of the decline in the buying and selling movement in the sector, did not significantly increase real estate rates from last year until now, as real estate prices increased by about 25% despite the increase in production costs.
He also advises a giver, especially those who want to invest in small amounts and do not have the ability to invest in real estate, to invest through certificates offered by banks, but after waiting for the next Central Bank meeting to know that the new interest that the Central Bank will announce will be directed.
The Monetary Policy Committee of the Central Bank will hold its second meeting during 2023 on March 30 to discuss the fate of the interest rate, after it decided to fix it last February, to record the central bank interest rate of 16.25% for deposits and 17.25% for lending.
Read also:
The price of gold in Egypt jumped 130% within a year of devaluing the pound (Graph)
The price of the dollar jumped 96% against the pound in the year of the great depreciation – infographic
The dollar or gold.. Which horse is the most profitable in the year of depreciation of the pound? – Infographic
