Hawala operators expect windfall

DOHA: People running unofficial remittance channels (hawala) between Qatar and Egypt literally anticipate a ‘windfall’ if the demonstrations continue in Egypt as that would aggravate inflation and further weaken the local currency.

The operators ‘hope’ that with rising inflation back home, Egyptian expatriates here would be compelled to remit more funds to their families to help them keep pace with galloping prices.

And since banks and exchange houses remain closed in Egypt, they expect the expatriates here would be forced to use the black market for remittances.

The Qatari Riyal-Egyptian Pound rate, though remained unchanged in the unofficial remittance market here yesterday at 1.9 pounds per riyal—Wednesday’s rate—operators expect a ‘brisk’ business from today. The official riyal-pound rate has also jumped to 1.7 pounds to a riyal, although official remittances continue to be inactive.

Meanwhile, dollars are selling like hot cake in Cairo as foreigners desperate to leave trouble-torn Egypt are willing to cough up any sums in the local currency to grab the greenback. Read more

Egypt bank closures cut off vital Gulf remittances

DUBAI, Feb 1 (Reuters) - The closure of Egyptian banks has prevented Gulf-based Egyptians, who make up the bulk of the population living abroad, from sending vital remittances back to the North African country, exchange operators said on Tuesday.

Egypt, racked by political unrest as demonstrators bid to end President Hosni Mubarak's 30-year rule, is heavily reliant on funds from its citizens abroad.

The World Bank estimates about $7.6 billion was remitted to Egypt in 2010. 

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Rainy-day oil funds see Mideast through downturn

DUBAI, United Arab Emirates — The Middle East has weathered the global economic downturn better than other parts of the world because its energy exporters were able to tap billions of dollars in oil profits collected when prices were booming, the International Monetary Fund said Sunday.

By reaching into those reserves, major oil producers like Saudi Arabia shielded their economies from the worst of the slump by maintaining government spending and injecting liquidity into domestic banking systems rattled by the credit crisis.

Doing so not only blunted the impact of the downturn on their own economies, but also helped shore up the economies of neighboring countries without large oil reserves, the IMF said. Read more