Today there was a frenzy in Cairo when rumors spread in the afternoon like fire that there were no foreign currency in banks and Foreign exchange companies. There was even that rumor about Western Union closing its offices in Egypt because it lacks US dollars.
Well Western Union offices are not going to suspend the work in Egypt and they are working fine but.. there is a foreign currency shortage at least in Cairo these days. The foreign exchange companies got no US dollars or Euros thanks to the huge demand on foreign currency “Euro and US dollars” early this week. What happened early this week !??
Well Egyptians freaked out when they heard the contradicting news/rumors about the resignation of the Central Bank of Egypt’s governor Farouk El Okdah
According to my sources Farouk El Okdah wants to jump the ship soon before Titanic would hit the iceberg soon but for some reason he can not jump now.
I will not go in economic debates because I am not an economic expert but We all know that Egypt is heading towards a terrible economic crisis that some compared to the Greek crisis.
Now socially there is a hysteria in the Upper , Upper middle and middle classes. People are calling each other advising them to withdraw their bank accounts and buy either gold or real estate. Some advised their friend to convert their Egyptian pounds to US dollars and Euro before the pound hits rock bottom. I am speaking about my friends , their families and their neighbors.
Ironically withdrawing their money from banks will harm the Egyptian economy for real. This has to stop. Rumors and wrong actions will make things even worse.