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Egyptian business magnate Hisham Talaat Moustafa, a prominent figure in the country’s business landscape, is facing the potential loss of his billionaire status as the recent devaluation of the Egyptian pound sends shockwaves through the market.
The devaluation has led to a staggering $727.8-million plunge in the market value of his stake in TMG Holding, a leading force in Egypt’s real estate industry.
Central Bank of Egypt’s policy shift triggers Moustafa’s $727-million wealth dip
The decline in Moustafa’s stake comes in the wake of a significant decision by the Central Bank of Egypt (CBE) to devalue the national currency, adopting a more market-friendly rate.
The CBE raised interest rates by 600 basis points to 27.25 percent in an effort to address the severe shortage of foreign currency in the country, resulting in a parallel exchange rate market with robust growth.
According to data tracked by Billionaires.Africa, Moustafa’s stake in TMG has declined by $727.28 million since March 6. This downturn follows the CBE’s announcement to allow the foreign exchange rate to be determined by the forces of supply and demand, leading to a depreciation of the local currency against foreign currencies.
Hisham Talaat Moustafa sees 35.28-percent dip amid currency woes
TMG Holding, with a history dating back to 1974, has grown to become one of Egypt’s largest real estate holdings under the visionary leadership of Moustafa. His 43.16-percent investment in TMG amounts to 890,633,483 ordinary shares.
Since March 6, Talaat Moustafa’s stake in TMG holdings has depreciated by 35.28 percent, falling from $2.06 billion to $1.33 billion as of the latest update.
This significant decline is attributed to the dramatic plunge of the Egyptian pound to a record low against the dollar, currently trading at 49.41 on the official market, marking a year-to-date depreciation of 50 percent, as reported by Xe.com, a Canada-based online foreign exchange tools and services company.
Despite the setback and financial challenges, Moustafa remains a prominent figure in the Egyptian business landscape. His influence extends beyond his controlling stake in TMG, reaffirming his resilience in navigating the complexities of emerging markets.
