In light of the Corona crisis, what are safe savings havens?

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and in EgyptInterest rates have fallen in line with the pandemic Corona, as it decreased by about 4 percent during 2020 (including 3 percent once in March of the same year, as part of measures to confront the repercussions of the pandemic) to reach 8.25 percent (on deposit), after it had reached its highest level in 2016, when the Monetary Policy Committee raised At the Central Bank, in June of the same year, the deposit interest rate increased from 10.75 percent to 11.75 percent, after the decision to liberalize the exchange rate in March 2016.

With the declining curve of interest rates, many are seeking profit-generating havens to benefit from their savings safely, in the medium and long term, which constituted a major impetus for moving to sectors that are expected to witness more movement in the coming periods.

on top of those Investments, Come investing in gold And the real estate sector, amid expectations of continuous future increases in the two sectors, in light of the trend towards them as safe havens or as a store of value, with the decline in interest rates.

"cowardly capital"

The Egyptian economic expert, Sayed Khader, said in statements to the website "Sky News Arabia", that "Declining interest rates and despite its positive aspects for the national economy, in terms of encouraging and promoting investments, individuals at the same time face negative effects of low interest rates, which leads to a decline in their financial returns, and thus there are clear options for individuals, either the direction to invest in Various tools or resort to safe savings".

He points out that many individuals start from the saying that "capital Coward", and therefore in such periods despite the decline BenefitSome people stay away from investing and tend to preserve the value of their savings and try to make profits at the same time. gold".

Khidr highlights the rise in gold prices and expectations of further rises, "Because of the demand of individuals and institutions for it with a decline in interest, and the search for safe ways to achieve a return in the short and long term".

It explains that "Despite the steps that have been taken towards recovery, the global economy is facing a major crisis, especially in the coming period, with the advent of the winter season and the high rates of infection with the Corona virus, especially in Europe, which in turn reflects on the economic situation in general, and leads to the continued flight of investments Savings with declining interest".

In the same context, he talks about the issue of some resorting to virtual currencies, which are witnessing great demand in the recent period due to rapid gains, which in turn affects direct and indirect investments, especially investment in stock exchanges.

But he notes that those currencies, which some believe to be a suitable haven in the current period, are in fact "not safe للاستثمار in general"It is recommended to resort to gold andReal estate In particular.

In light of the economic reform program pursued by Egypt, and with the repercussions of the pandemic Corona After that, interest rates have seen wide moves in recent years.

The central bank fixed the interest rate weeks ago for the eighth time in a row, despite the high rates inflation. The last meeting of the Monetary Policy Committee is scheduled to be held in 2021 on December 16central bank.

gold

In the estimation of the head of the Gold Chamber of the Federation of Industries, Rafiq Abbasi, with the decline in interest rates, some savings are transformed into alternative ways of saving, including gold, but he explains at the same time that "Gold in general around the world, is a store of value and not an investment, in the sense that it maintains the value of money".

He points out in statements to the site "Sky News Arabia", until it "If the purpose is to save and preserve the value of money that loses its value over time, then gold in this case is the best option; It preserves the value".

And he continues: "But if the purpose is to invest, there are other investment options besides banks, including investing in money markets".

Abbasi concludes his speech by explaining: "Gold retains the value of the currency, but at the same time it does not give its holder a periodic income other than stocks. Gold can be resorted to if you want to save for fear that the currency will lose its value over time, and in light of the decline in interest".

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and in EgyptInterest rates have fallen in line with the pandemic Corona, as it decreased by about 4 percent during 2020 (including 3 percent once in March of the same year, as part of measures to confront the repercussions of the pandemic) to reach 8.25 percent (on deposit), after it had reached its highest level in 2016, when the Monetary Policy Committee raised At the Central Bank, in June of the same year, the deposit interest rate increased from 10.75 percent to 11.75 percent, after the decision to liberalize the exchange rate in March 2016.

With the declining curve of interest rates, many are seeking profit-generating havens to benefit from their savings safely, in the medium and long term, which constituted a major impetus for moving to sectors that are expected to witness more movement in the coming periods.

on top of those Investments, Come investing in gold And the real estate sector, amid expectations of continuous future increases in the two sectors, in light of the trend towards them as safe havens or as a store of value, with the decline in interest rates.

‘Cowardly capital’

The Egyptian economic expert, Sayed Khedr, said in statements to “Sky News Arabia”, “The decline in interest rates, and despite the positive aspects that it entails for the national economy, in terms of encouraging and promoting investments, individuals at the same time face negative effects of low interest, This leads to a decline in their financial returns, and thus there are clear options for individuals, either to invest in different tools or to resort to safe savings.”

He points out that many individuals start from the saying that “capital cowardly”, and therefore in such periods despite the decline BenefitSome people stay away from investing and tend to preserve the value of their savings and try to make profits at the same time. gold“.

Khidr highlights the rise in gold prices and expectations to continue rising, “due to the demand of individuals and institutions for it with the decline in interest, and the search for safe ways to achieve a return in the short and long term.”

He explains, “Despite the steps that have been taken towards recovery, the global economy is facing a major crisis, especially in the coming period, with the advent of the winter season and the high rates of infections with the Corona virus, especially in Europe, which in turn reflects on the economic situation in general, and pushes to Continuing flight of investments and savings with the decline in interest.

In the same context, he talks about the issue of some resorting to virtual currencies, which are witnessing great demand in the recent period due to rapid gains, which in turn affects direct and indirect investments, especially investment in stock exchanges.

But he notes that those currencies, which some believe are a suitable haven in the current period, are in fact “unsafe”. للاستثمار In general, it is recommended to resort to gold andReal estate In particular.

In light of the economic reform program pursued by Egypt, and with the repercussions of the pandemic Corona After that, interest rates have seen wide moves in recent years.

The central bank fixed the interest rate weeks ago for the eighth time in a row, despite the high rates inflation. The last meeting of the Monetary Policy Committee is scheduled to be held in 2021 on December 16central bank.

gold

In the assessment of the head of the Gold Chamber of the Federation of Industries, Rafiq Abbasi, with the decline in interest rates, some savings are transformed into alternative ways of saving, among them gold, but he clarifies at the same time that “gold in general around the world is a store of value and not an investment, Meaning to preserve the value of money.

He points out, in statements to “Sky News Arabia”, that “if the purpose is to save and preserve the value of money that loses its value over time, then gold in this case is the best option, as it preserves the value.”

And he continues: “But if the purpose is to invest, there are other investment options besides banks, including investing in money markets“.

Abbasi concludes his speech by explaining: “Gold retains the value of the currency, but at the same time it does not give its owner a periodic income other than stocks. Gold can be resorted to in the event of a desire to save for fear that the currency will lose its value over time, and in light of the decline in interest.”

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