Egypt lost 3,000 of its millionaires under Morsi government: Credit Suisse

Sara Aggour
3 Min Read
Former President, Mohamed Morsi (AFP File Photo)
Former President, Mohamed Morsi (AFP File Photo)
Former President, Mohamed Morsi
(AFP File Photo)

Credit Suisse, an international research institute, reported that the number of Egyptian millionaires has dropped by 3000 during the one-year rule of deposed president Mohamed Morsi, falling from 25,000 in 2012 to 22,000 in 2013. The report indicated that devaluation of the Egyptian pound played a major role in impacting the country’s wealth between 2012 and 2013.

The “Global Wealth Report” said that Egyptian pound has depreciated by more than 15% between mid-year 2012 and mid-year 2013.

“Much of the wealth decline in Argentina, Egypt, South Africa and Brazil is due to currency depreciation versus the USD,” the report read adding that: “the exchange rate movements versus the US dollar have had a significant impact on the relative wealth rankings of individual countries within the global league table.”

The volatility of the Egyptian pound has been visibly clear after the January 2011 uprising. The appreciation and depreciation of the local currency were affected by political events and violence especially after the ousting of former President Mohamed Morsi.

Following the violent dispersal of the pro-Morsi sit-ins in Rabaa Al-Adaweya and Al-Nahda Square, the dollar reached EGP 7.20 compared to EGP 7.05 in July, on the black market, only to surge later during the same month after the low-turnout at political demonstrations where it was bought for EGP 6.9868 and sold for 7.0168.

The research institute defined the category of wealth that exists in Egypt, along with several other Asian and Latin American countries, as “Frontier Wealth”, which ranges from $5,000 to $25,000 per adult.

The report further added that the signs of wealth decline in Egypt were illustrated in the 10% plump in the Egyptian household wealth between 2012 and 2013.According to the report, the global household wealth equates to $51,600 per adult, a new all-time high for average net worth.

In its attempt to ameliorate the living standards of Egyptian citizens, the interim government announced Tuesday the finalisation of a new law to improve the income for medical professions on an average of 420% to 600% increase on their original salary. Earlier in September, the government set the minimum income for public sector employees at EGP 1,200.

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