The Egyptian government today took the first steps to try to resume daily routine, with banks and businesses reopening today after being closed for a week. The Central Bank of Egypt has injected $854 million into the financial system in the face of massive withdrawals from deposits. It also restricted withdrawals by foreign residents to $10,000. The Cairo and Alexandria Stock Exchange (CASE) will also reopen.
News agencies report long lines outside banks by customers, afraid to keep their money in banks, seeking to withdraw it. Foreigners are trying to sell Egyptian pounds, buy foreign currency, and leave the country, which has pushed the Egyptian pound to levels last seen in January 2005.
Egyptian security forces are deploying along the Suez Canal, to prevent possible terrorist attacks by Hamas or Hizbullah. The Egyptian authorities raised the level of alert several times in recent years out of concern of attacks by the two organizations, which oppose the Egyptian government.
In a separate development, the Muslim Brotherhood, the largest organized opposition party to President Hosni Mubarak, announced that it will meet Egyptian Vice President Omar Suleiman to discuss issues. The parties are expected to discuss Mubarak's resignation and procedures for democratic elections.
Published by Globes [online], Israel business news - www.globes-online.com - on February 6, 2011
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