Dollar drops below LE6 FOR THE FIRST time in almost 18 months the dollar's exchange rate has dropped to less than LE6. The exchange rate for the greenback in Egyptian banks ranged from LE5.9 to LE5.95 in early week transactions. While the decline was expected due to the decrease in the dollar worldwide, local factors contributed to the fall. The retreat came only two weeks after the enforcement of the dollar interbank market transactions under which banks with liquidity requirements can borrow quickly from other banks with surpluses for periods starting from one night. There are 34 local banks currently working within this mechanism. Moreover the recent increases on interest rates on pound-denominated deposits have encouraged investors to transfer their deposits from dollars to pounds for fear of a further decline in the real value of their savings. The decrease in the exchange rate has pushed investors to rush to liquidate their positions which consequently further weighed down on the dollar rate. "We are not looking forward to any revaluation of the pound," Central Bank Deputy Governor Atef Ibrahim told Reuters. Ibrahim, commenting on the strengthening pound versus the dollar, was quoted as saying, "all we would like to see is a fair value for the pound, and that supply and demand reach break-even point that is practical for the economy to grow." Unfinished business CIMENTS FRAN�AIS reported that it had acquired a further 5.8 per cent stake in Suez Cement at the close of its $550 million bid for the group. Ciments Français now owns 39.9 per cent of Suez Cement stock. The company had been hoping to acquire all Suez shares until the government rejected its offer. In early December Ciments Français offered a 12 per cent premium on November's average share price when it offered LE80.05 a share. The offer was supposed to close on 16 December but was extended until last Thursday. The Egyptian government, which holds 45 per cent of Suez Cement, refused the offer. "Despite not holding an absolute majority of share capital Ciments Français confirms its commitment to Suez Cement," a company press release said. Yet the future of the deal remains unclear. Ciments Français insists its offer was fair given the conditions -- including maintaining Suez's workforce -- that had been imposed on the deal. The government, meanwhile, says it wants more. Suez Cement leads the local cement sector with a 2003 market share of 22 per cent. Dubai conference AN INTERNATIONAL conference for Middle Eastern newspapers and magazines -- organised by Dubai's International Media Production Zone (IMPZ), Dubai Media Incorporated (DMI), the World Association of Newspapers, and the International Federation of the Periodical Press -- will be taking place in Dubai on 17-18 January. "The conference will present the industry's best practices and promote standards in an effort to help the development of the Middle Eastern press," said IMPZ Director Mohamed Bin Ghalib. He said the conference would feature workshops on several topics, including the growth prospects for the region and the impact of new media and technologies. The conference's marketing director, Ashraf Sharaf, said the event would be held at the Knowledge Village in the Dubai Technology and Media Zone. Roger Sahyoun, president of the AGA advertising and marketing company, said the conference would provide a good opportunity for newspaper and magazine publishers from around the world to share their strategies and ideas with their Middle Eastern colleagues. Abreast of IT CEBIT 2005, the world's largest information technology and telecommunications fair, will be held in Hanover from 10-16 March. The event, which attracted 556,248 visitors last year, will display products from 59 countries. Joeg Schomburg, president of CeBIT, predicts the number of visitors will double this year. "CeBIT Hanover is the essential tradeshow for information and telecommunications technology," says Schomburg, and it offers unrivalled sales opportunities. There will be 15 Egyptian companies represented at CeBIT 2005. "The event," says Schomburg, "offers Egypt an excellent opportunity to show off its increasingly dynamic sector to operators interested in partnerships." The participating companies will exhibit hardware, software, multimedia, telecommunications, computers and networking services. The information technology and communication world forum will be held on the fringe of the fair. Every minute counts THE EGYPTIAN Association for Political Economy recently hosted a lecture by the Director-General of the Bibliotheca Alexandrina Ismail Serageldin on the Egyptian economy at the beginning of a new century. The lecture centred on Egypt's future economic goals and challenges. Serageldin said he believed an Egyptian economic reform programme must go hand in hand with progress in advanced scientific applications and technology which can speed up the pace of growth and utilise the potential of a young work force. He said Egypt should place unemployment, which he estimated to be around 30 per cent of the work force, at the centre of the country's policy-making strategy and warned that if policy changes are not made, Egypt will have 525,000 unemployed people per year, meaning that every minute an additional Egyptian youth will be unemployed. To solve the problem the economy must create 1.8 million jobs per year. According to Serageldin, this type of job creation can only take place if Egypt can reach six to seven per cent GDP growth levels, complemented by a sharp rise in savings and investment.
