Jewellery, bullion demand in Egypt shrinks by 17% in 1Q of 2024 as prices rise: WGC

The WGC’s update on the gold demand trends, released on Tuesday, showed that gold jewellery purchases in Egypt rose by three percent (Y-o-Y) in the 1Q to three tons. This was attributed to the latest depreciation of the Egyptian pound that drove down local gold prices and the country’s expanded $8 billion loan deal with the International Monetary Fund (IMF).

On the other hand, the report showed that bullion demand in Egypt decreased by 36 percent in the 1Q of 2024 to reach 5.2 tons

Since 6 March, the Egyptian pound has been subject to the demand and supply forces in the local market. Since then, the rate of the Egyptian pound jumped by over 25 percent against the US dollar and other currencies, losing over 60 percent of its value against the greenback.

Moreover, the IMF approved a $8 billion bailout package for Egypt, expanding the loan deal from $3 billion to $8 billion through 2026, allowing the country to receive a tranche worth $1.3 billion every six months.