Saturday 5 February 2011

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

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