Sign in to follow this  
Followers 0
yota691

Moody's confirms Egypt's rating at B3 with a stable outlook

49 posts in this topic


4041.jpg 
 
 He said the Central Bank of Egypt Governor Tarek Amer, he would not float the Egyptian pound before foreign exchange reserves increase to a level between 25 and 30 billion dollars, up from the current size of the reserve which is 16.48 billion dollars.
 
Amer said in response to a question in a talk show whether it will reduce the value of the Egyptian currency, "Not at all .. When the reserve up to 25 or 30 billion dollars stay .. we think we are Bnraay society."
 
And facing Egypt, which relies on imports shortage of foreign currency since the uprising started in the country in 2011 and led to the deportation of tourists and investors. These two sectors main hard currency.
 
Egypt is under increasing pressure to devalue the pound. But it surprised the markets, an increase of 20 pounds in November and kept it stable since then.
 
And it is still the official exchange rate of the pound is much stronger than its price on the black market as it reached 9.10 pounds to the dollar on Sunday, unchanged from Thursday.
 
And retreated from the foreign exchange reserves of $ 36 billion in 2011 to 16.48 billion dollars by the end of January.
 
separator.gif 
Views 21   Date Added 02/22/2016 11:15 -   Last Updated 02/22/2016 - 12:33   No. Content 2180

 

2

Share this post


Link to post
Share on other sites
  •  
  •  
  •  
  •  

($4 bln auction, market reaction, CDs, background)

By Lin Noueihed and Asma Alsharif

Nov 3 Egypt's central bank floated the pound currency on Thursday, devaluing by 32.3 percent to an initial guidance level of 13 pounds to the U.S. dollar in a move to rebalance currency markets after weeks of turbulence.

The Egyptian pound had been pegged at 8.8 to the dollar since March, but a shortage of dollars in the economy had put the currency under intense downward pressure in recent months.

Egypt has struggled to earn dollars since a 2011 uprising drove away tourists and foreign investors -- the country's main sources of foreign currency.

The central bank has been rationing dollars and imposing strict capital controls whilst maintaining the pound at an artificially strong official rate hampering trade in a country that relies on imports of everything from cars to food.

A rapid slide on the black market to 18 earlier this week prompted importers to cease buying greenbacks. The rate then strengthened to 13 per dollar by late on Wednesday, creating a rare opportunity for the central bank to devalue.

1

Share this post


Link to post
Share on other sites
 

 

10453.jpg
   

Economy News / Continue ...

 
 
The Central Bank of Egypt, Thursday, editor of the Egyptian pound's exchange rate.
The bank said that determine the exchange rate of the local currency will be in accordance with the mechanisms of supply and demand.
 
The central bank and the granting of freedom of banks operating in Egypt in the foreign-exchange pricing, through the interbank market (interbank) mechanism.
 
Central also allowed banks to open their branches until the ninth evening and weekend days, to carry out the purchase and sale of currency and exchange remittances of overseas workers.
 
The central bank said that "no restrictions on deposit and withdraw foreign currency individuals and companies, and will not impose conditions for waiver of the foreign currency."
 
According to the central continually deposit and withdrawal of the previous companies operating in the import of goods and products is fundamental limits.
 
The bank also announced increased both deposit and lending interest for one night and 300 basis points, to 14.75% and 15.75%, respectively.
 
Egypt and implement economic reforms package at the request of the International Monetary Fund, in order to obtain a loan of $ 12 billion.
 
 
mm
Views 4   Date Added 11/03/2016 - 9:33   last updated 03/11/2016 - 10:45   No. Content 5678
2

Share this post


Link to post
Share on other sites
03-11-2016 11:35 AM
image.php?token=3c8a75a7b0b70d8a7fc7b8d4911b10b1&size=
 


 

 

Egypt 's central bank announced Thursday to float the Egyptian pound and leave the freedom of pricing for banks in order to eliminate the black , which rebounded in Egypt for several months because of the pressure on the dollar market. 

In a statement, the central bank said it " has decided to take several measures to correct politicians trading foreign exchange through the liberation of the prices exchange to give the flexibility of banks operating in Egypt are priced to buy and sell foreign exchange in order to regain traded within Bill channels completely and end market Almoish of foreign exchange. " 

as the central bank announced to raise interest rates on deposits in Egyptian pound price" rose 300 basis points the asset to 14.75% , "and to "15.75%" for lending. 

the official rate of the pound against the dollar (which is the main foreign currency in Egypt) is selected several months ago to 8.8 pounds to the dollar. 

but because of the acute shortage of Egypt 's resources of foreign currency due to security and political unrest since overthrow of Hosni Mubarak in 2011, the dollar rose on the black market in recent days to up to 18 pounds last weekend.

struck Egypt in August / August last preliminary agreement with the international Monetary Fund for a loan of $ 12 billion over three years to implement economic reform program Mali includes several measures including liberalization of the Egyptian currency exchange rate.

1

Share this post


Link to post
Share on other sites

Egypt devalues currency by 48% to meet IMF demands for $12bn loan

The Egyptian pound will be allowed to float as government struggles with worst economic crisis in decades

Associated Press in Cairo

Thursday 3 November 2016 12.43 GMT

3500.jpg?w=700&q=55&auto=format&usm=12&fit=max&s=0db50854109a141c71673d145489455f
An employee counts Egyptian pounds in a bank in Cairo.
Photograph: Mohamed Abd El Ghany/Reuters
 
 
1

Share this post


Link to post
Share on other sites

Egypt devalues currency by 48% to meet IMF demands for $12bn loan

The Egyptian pound will be allowed to float as government struggles with worst economic crisis in decades

 
 

Thursday 3 November 2016 08.43 EDT Last modified on Thursday 3 November 2016 10.53 EDT

 

Egypt has devalued its currency by 48% and announced that it will be allowed to float – measures that meet a key demand by the International Monetary Fund in order to secure a $12bn (£9.6bn) loan over three years to overhaul its ailing economy.

The devaluation pegged the Egyptian pound at 13 to the dollar, up from nearly nine on the official market. A central bank auction of dollars will be held later on Thursday, allowing supply and demand to determine the value of the pound for the first time in decades.The devaluation was virtually certain to cause a steep hike in prices, piling pressure on Abdel Fatah al-Sisi’s government to avoid a popular backlash against its handling of the economy.

3500.jpg?w=460&q=55&auto=format&usm=12&fit=max&s=48f4ef07ec06f5f3f120397f150c9c09

Sisi has repeatedly urged Egyptians in recent weeks to rally behind him as he grapples with the country’s worst economic crisis in decades, arguing that there was no way out of the economic crisis unless Egyptians “endure and be patient.”

Sisi, a general turned president elected in 2014, has pledged to do all he can to protect Egypt’s poor from the inflationary fallout that is certain to come with economic reforms. Last week he said the military would distribute a one-off package of basic food items such as sugar and rice at half price among poor Egyptians.

Also on Thursday, the central bank raised by three percentage points its two key overnight interest rates.

The bank said the measures were part of the government’s reform programme and designed to “completely end” the unofficial currency market. The measures, it said, would “empower the Egyptian economy to face the present challenges, unleash its potential and achieve the hoped-for growth”.

“The floatation is an excellent, overdue step that, thank God, we took it,” the Egyptian business tycoon Naguib Sawiris wrote on Twitter. “We must all help to make this step a success.”

The much heralded central bank decision followed a sharp and sudden decline this week in the value of the dollar on the unofficial market, plunging from an all-time high of 18.25 pounds to about 13 to the US currency.

Abdel Fatah al-Sisi has repeatedly urged Egyptians in recent weeks to rally behind him. Photograph: AFP/Getty Images

The IMF’s executive board has yet to ratify the $12bn loan provisionally agreed between Egypt and the lender of last resort in August.

Advertisement

Egypt is also expected to reduce or lift altogether state subsidies on fuel to meet IMF conditions. It has already reduced subsidies on household electricity and hiked the price of sugar by 40% for ration card holders.

Seeking to calm nerves at a time of economic tumult, the central bank said it guarantees deposits in all currencies and that individuals and companies would face no restrictions in depositing and withdrawing foreign currency. Regulations governing importers of non-essential goods would remain in place, it said.

Banks would be allowed to operate until 9pm and open on weekends to buy and sell foreign currency, it added. Banks in Egypt are normally open to the public until 5pm and close on the Friday-Saturday weekend.

The developments on Thursday came just two days after the association of the chambers of commerce inflicted a blow to the unofficial currency market, announcing a two-week freeze in dealing with black market currency traders and curtailing the imports of non-essential goods for three months.

On Tuesday, the supreme investment council, a newly formed body led by Sisi, approved a package of measures designed to spur the economy, including a three-year freeze on taxing capital gains on stocks and an unspecified increase in the number of state-owned companies to be partially privatised.

https://www.theguardian.com/world/2016/nov/03/egypt-devalues-currency-meet-imf-demands-loan

2

Share this post


Link to post
Share on other sites

Egypt devalues, floats its currency

056493b8-3b51-49dd-bf53-db8b5da83c47_16x
A man counts Egyptian pounds outside a bank in Cairo, Egypt October 24, 2016. reuters
AP, Reuters, CairoThursday, 3 November 2016
Text size A A A
 
 

Egypt devalued its currency by 48 percent on Thursday and announced the pound would be allowed to float - measures that meet a key demand by the International Monetary Fund in exchange for a $12 billion loan over three years to overhaul the country's ailing economy.

The devaluation pegged the Egyptian pound at 13 to the dollar, up from nearly nine on the official market. A Central Bank auction of dollars will be held later Thursday, allowing supply and demand to determine the value of the pound for the first time in decades.

The devaluation was virtually certain to cause a steep hike in prices, piling up pressure on President Abdel-Fattah el-Sissi's government to avoid a popular backlash against its handling of the economy.

El-Sissi has repeatedly urged Egyptians in recent weeks to rally behind him as he grapples with the country's worst economic crisis in decades, arguing that there was no way out of the economic crisis unless Egyptian "endure and be patient."

El-Sissi, a general-turned-president elected in 2014, has pledged to do all he can to protect Egypt's poor from the inflationary fallout that is certain to come with economic reforms. Last week, he said the military would distribute a one-off package of basic food items such as sugar and rice at half price among poor Egyptians.

Also Thursday, the Central Bank raised by three percentage points its two key overnight interest rates.

The bank said the measures were part of the government's reform program and designed to "completely end" the unofficial - or black - currency market. The measures, it added, will "empower the Egyptian economy to face the present challenges, unleash its potential and achieve the hoped-for growth."

"The floatation is an excellent, overdue step that, thank God, we took it," Egypt's business tycoon Naguib Sawiris wrote on his Twitter account. "We must all help to make this step a success."

Thursday's much heralded Central Bank decision followed a sharp and sudden decline this week in the value of the dollar on the unofficial market, plunging from an all-time high of 18.25 pounds to around 13 to the U.S. currency.

The IMF's executive board has yet to ratify the $12 billion loan provisionally agreed by Egypt and the lender-of-last-resort in August.

Egypt is also facing another painful must - it's expected to reduce or lift altogether state subsidies on fuel to meet IMF conditions. It has already reduced subsidies on household electricity and hiked by 40 percent the price of sugar for ration card holders.

Seeking to calm nerves at a time of economic tumult, the Central Bank said it guarantees bank deposits in all currencies and that individuals and companies would face no restrictions in depositing and withdrawing foreign currency. Regulations governing importers of non-essential goods would remain in place, it added.

Banks would be allowed to operate until 9 p.m. and open on weekends to buy and sell foreign currency, it added. Banks in Egypt are normally open to the public until 5 p.m. and close on the Friday-Saturday weekend.

Thursday's developments came just two days after the association of the chambers of commerce inflicted a blow to the unofficial currency market, announcing a two-week freeze in dealing with black market currency traders and curtailing the imports of non-essential goods for three months.

On Tuesday, the Supreme Investment Council, a newly formed body led by el-Sissi, approved a package of measures designed to spur the economy, including a three-year freeze on taxing capital gains on stocks and an unspecified increase in the number of state-owned companies to be partially privatized. 

IMF welcomes float

The International Monetary Fund (IMF) has welcomed Egypt’s decision to float its pound currency on Thursday, it said in a statement, adding that the decision would boost competitiveness and attract foreign investment.

“We welcome the Central Bank of Egypt’s decision to liberalise the foreign exchange system and adopt a flexible exchange rate regime,” said IMF Mission Chief for Egypt Chris Jarvis in a statement.

“This will make more foreign exchange available. The flexible exchange rate regime, where the exchange rate is determined by market forces, will improve Egypt’s external competitiveness, support exports and tourism and attract foreign investment.”

Last Update: Thursday, 3 November 2016 KSA 15:00 - GMT 12:00
   0
2

Share this post


Link to post
Share on other sites
Last update: Friday 4 Safar 1438 H - November 4, 2016 m KSA 14:34 - GMT 11:34
 
Friday 4 Safar 1438 H - November 4, 2016 AD
3e934b6a-404e-4b09-a2ac-c09a7fd8aa6c_16x
  •  
  •  
Arabiya

We exchange markets on Friday to further decline in the pound over the coming months, following the central bank's decision to edit the exchange rate on Thursday.

And predict futures non-delivery used by traders to form centers, in anticipation of the rise in the currency or falling, that the pound would fall to 15.6 to the dollar in three months and to 15.9 in the six months to 17 within a year, according to news "Reuters".

Egypt and devalued the pound by a third on Thursday, to pilot an initial price reached 13 pounds to the dollar from 8.8 pounds, and then fell more currency to around 14.65 in the Central Bank tender for the sale of hard currency.

The move aims which coincided with a sharp increase in interest rates, to bring stability to the Egyptian market, and pave the way for a loan of $ 12 billion from the International Monetary Fund.

2

Share this post


Link to post
Share on other sites

YOTA, UMBERTINO, THESEUS AND SOCALDINAR THANK YOU. :twothumbs:

0

Share this post


Link to post
Share on other sites
 
Sunday 6 Safar 1438 H - November 6, 2016 AD
e68f59fe-edf4-4a55-a833-7dec20370309_16x
  •  
  • Tweet
  • Participate
  •  
  • Short link
Cairo - Reuters

Mohammed Etribi, chairman of Banque Misr, said that his bank raise the point of using credit cards outside of Egypt from the beginning on Sunday, between 100 and 150 percent, while proved the point of using debit cards unchanged.

And last night lifted the Commercial International Bank of Egypt, the largest private bank in the country, the maximum drag and purchase credit card, direct debit, outside of Egypt to the owners of bank accounts denominated in Egyptian pounds.

And come Banque Misr, Commercial International Bank decisions after the release of the Central Bank of Egypt last Thursday pound exchange rate, raise interest rates 300 basis points to restore balance to currency markets.

He Etribi in contact with Reuters, "we raised the maximum use of credit cards beginning of the day, we set uses debit cards. We raised the classic $ 1000 card to $ 2,500, and the card the Gold rose 100 percent to $ 4,000, and the same percentage of the Platinum Card to $ 8,000."

He headed a number of public and private banks operating in the country during the past few months to reduce the maximum use of debit and credit cards out of Egypt under a currency crisis experienced by the country.

Commercial International Bank and kept the stop cash withdrawal card discount denominated in the local currency out of the country, but raising the purchase limit to $ 80 from $ 50 previously, and titanium to $ 2400 from $ 150 previously, and platinum to $ 4,800 from $ 300 previously.

International trade and raise the purchase limit for credit cards denominated in local currency significantly for up to 56 thousand pounds per month in the cards titanium from 8 thousand previously and to 24 thousand pounds in the Gold and Classic cards.

The ranges of the dollar in banks operating in Egypt is between 15:50 and 16 pounds.

1

Share this post


Link to post
Share on other sites
Learn the hardest hit sectors of the pound float
Sunday 6 Safar 1438 H - November 6, 2016 AD
a40d72db-f347-4a4a-acc6-4ccf2d33e9a0_16xThe Egyptian stock market go up after the float pound
  •  
  • Tweet
  • Participate
  •  
  • Short link
Arabiya

D expect. Moatasem Alshahyda, a board member of Horizon Company Securities, have the effect of exchange rate float the pound, mixed on sectors and companies of the Egyptian stock market.

Alshahyda said in an interview with the channel "Arab" The Central Bank of Egypt, does not sell currencies to defend the exchange rate, but it would be his goal adjust the exchange rate, and create a state of balance it to eliminate the black market.

He pointed to the central withdraw liquidity through certificates of deposit at a rate of return of 30% will attract a large slice of the retention dollar.

He explained that companies will not be able to reverse the difference in the exchange rate to their customers by raising prices, it will be the biggest hit, and between those agencies, "drug companies" that can not raise the prices of their products only by reference to government agencies.

He said that the price discount associated companies and deposit with the Central Bank, will bear the high costs in the short term, due to the high interest rates in Egypt.

He predicted that the Egyptian central bank cut interest rates after treatment of the effects of the pound float applied in Egypt since last Thursday's exchange rate policy.

1

Share this post


Link to post
Share on other sites
Egypt is preparing to receive the first slice of the loan IMF
Sunday 6 Safar 1438 H - November 6, 2016 AD
e262a65e-dfd5-45a8-9aa9-2125f6e04d2d_16xGovernor of the Central Bank of Egypt Tarek Amer
  •  
  • Tweet
  • Participate
  •  
  • Short link
Arabiya

The governor of the Central Bank of Egypt, Tarek Amer, said his country hopes to receive the first tranche of IMF loan amounting to $ 12 billion within days.

Amer told a news conference in Cairo that "no retreat from the liberalization of the exchange rate policy."

Aamir spoke about liberalization of the exchange rate decision and its consequences on the Egyptian economy, stressing that the decision was made to attract investment and raise reserves in light of the lack of funds within the country for the implementation of development plans.

He stressed that controls the use of credit cards abroad due to banks, pointing out that the Egyptian Central does not specify the conditions of use of credit cards abroad.

The governor of the Central Bank of Egypt said some dealers misused credit cards outside the country.

1

Share this post


Link to post
Share on other sites

1-793212.jpg

Banknotes worth 100 pounds - archival
 
 
  •  
  •  
  •  
  •  
  •  
  •  
 

Abu Dhabi - Sky News Arabia

There has been little effect on the price of the pound in early trading, Sunday, with a free float of currencies among banks continued in Egypt, in a move designed to eliminate the black market and get a loan from the International Monetary Fund to change.

The central bank announced to float the pound on Thursday, reducing its value by almost a third at the beginning of the official price of 8.8 pounds to the dollar, and later fell more.

The banks offered to buy the dollar versus 15.6 pounds and sales compared to 16 pounds, and it was the price of the pound at the close on Saturday, 15.35 pounds against the dollar.             

And it began to transactions between banks in the ten o'clock Sunday morning (08:30 GMT), but it was very quiet in the absence of visibility of the supply and demand for the dollar in the future.             

 

1

Share this post


Link to post
Share on other sites
A man counts Egyptian pounds outside a bank in Cairo, Egypt October 24, 2016.  REUTERS/Mohamed Abd El Ghany/File Photo
A man counts Egyptian pounds outside a bank in Cairo, Egypt October 24, 2016. REUTERS/Mohamed Abd El Ghany/File Photo
  •  
  •  
  •  
  •  
By Ahmed Aboulenein and Asma Alsharif | CAIRO

Egypt's pound was almost steady early on Sunday as banks began trading freely for the first time since authorities ditched the currency's peg in a policy shift designed to crush a black market and clinch an International Monetary Fund loan.

Interbank trading began at 1030 a.m. (0830 GMT) but activity was extremely slow because banks were uncertain about the prospects for supply and demand of U.S. dollars.

The pound EGP=D1 weakened slightly from 15.50 against the dollar on opening to 15.75 in the first 75 minutes. Banks were bidding for dollars around 15.60 and offering around 16.00 EGP=. The pound had closed at 15.35 on Saturday.

Despite the slow start, Egyptians are braced for a currency roller coaster in coming days and weeks, with many expecting further depreciation of the pound as banks struggle to meet an anticipated deluge of pent-up dollar demand from companies that struggled for two years to secure hard currency.

"People do not know how to trade FX in a free market yet. I'd say it will touch 18 before the end of the day if anyone is offering," said one banker. "Activity will pick up tomorrow, irrespective of what happens today."

Egypt floated its currency on Thursday, initially devaluing it by about a third from its peg of 8.8 to the dollar and then letting the currency drift weaker.

Banks were open over the Friday-Saturday weekend but Sunday was the first formal day of trading without direct central bank guidance.

Business people and importers have welcomed the float, which ended strict rationing of dollar supplies at banks and dealt a blow to the dollar black market, which boomed under the peg.

The pound hit a record low of 18 per dollar on the black market last Sunday, prompting a boycott by importers. This saw the rate bounce back to 13 per dollar within days, giving the central bank a window in which it could abandon the peg with relatively little risk of massive volatility.

Some bankers expressed disappointment that the central bank has not flooded the system with hard currency to help stabilise the pound in the early weeks of trade. They predicted the black market would return if banks are unable to meet the backlog of dollar demand at businesses.

However, bankers said the central bank could still intervene by the back door, providing state-owned Banque Misr and National Bank of Egypt with foreign currency to sell to other banks. On Sunday morning, there was no evidence that this had happened.

Black market traders met late on Saturday to discuss the currency situation. One black market source said the traders, believing the banks would be unable to meet dollar demand, had decided at the meeting to start selling dollars at 18.50 pounds.

 

"Importers will be desperate so they will have to go to us for FX," the source said.

But businessmen have become deeply frustrated by black market profiteering and rather than go back to that market, some may prefer to pay more expensive rates for dollars from banks in order to help stabilise the new currency system.

"The interbank market started and there is not much activity. There are mispricings in the market but apparently no one is taking advantage of them," said one local banker, adding that there should be some volume traded later in the day.

"People have to test it, even if it is at small volumes."

 

(Additional reporting by Arwa Gaballa and Lin Noueihed; Writing by Lin Noueihed; Editing by Andrew Torchia)

2

Share this post


Link to post
Share on other sites

International Trade raises clouds end and the purchase of cards abroad

International Trade raises clouds end and the purchase of cards abroad
Increase the maximum purchases of bank customers Baforeig- image from Reuters Arabian Eye
 
 November 06 2016 15:33
Commercial International BankCOMI7.25%59.164.00

Cairo - directly: lift the World Bank - Egypt trade, the clouds end and the purchase discount cards and credit out of the country for the first time in November, after a 5 times reduction .

He explained the bank through its website, on Saturday night, it raised the ceiling for purchase and withdrawals with credit cards outside of Egypt, as of November 5 th, according to the variables of the money market, and to meet customers' demands.

According to the statement, the Bank determines clouds credit cards for the new Egyptian pounds extent "White" at 750 pounds, and purchases by 8 thousand pounds, while the total monthly cash withdrawal cards Classic, Standard and Gold extent to 1.75 thousand pounds, and purchases about 24 thousand pounds.

The monthly cash withdrawal cards titanium and platinum at about 1.75 thousand pounds extent, purchases about 56 and 64 thousand pounds, respectively, according to the statement.

International Trade and he had, the Bank discontinued operations on the old credit cards in Egyptian pounds, "White", also set monthly draw for cash cards Classic and Gold Standard and titanium and platinum at 1000 pounds, according to an earlier statement.

Regarding the cards debit in foreign currency, the bank select Cash classic cards and titanium and platinum extent of about 2, 3 and 5 thousand dollars, respectively, while the total limit purchases of the three cards at about 10, 20, 30 thousand dollars, respectively.

According to the statement, the bank suspended operations on classic cards and titanium and platinum in local currency, while the total limit purchases of the three cards at 800 pounds and 2.4 million pounds and 4.8 million pounds respectively.

A number of banks operating in the Egyptian market has reduced the drag-and-purchase limits abroad during the last period on the instructions indirectly from the Central Bank of Egypt, with the continuation of hard currency crisis.

The oldest of the Central Bank of Egypt, on Thursday, to float the pound in an attempt to fix the exchange rate in a country that imports most of its needs from abroad.

The central bank has put a price indicative of the dollar around 13.75 pounds levels, while allowing banks to deal by a margin of about 10%.

The trading price of the dollar and local banks at 15.5 pounds and 16 pounds levels.

1

Share this post


Link to post
Share on other sites

Egyptian Stock Exchange recorded its highest level in 19 months

Date:November 06 2016
image.JPG
 

Jumped the main index of the Egyptian Stock Exchange, Sunday, 5.85 percent higher at 9330.93 points, its highest level in 19 months, days after the pound float.

Jumped Commercial International Bank, 10 percent to its highest level ever.

And won market share capital of the shares of listed companies about 29.5 billion pounds to end Sunday trading at a level of 458.2 billion pounds on turnover of about 1.47 billion pounds.

The main market, "Eiji X 30" index jumped 6.12 percent to 9349.90 points level, as "EGX 70" index for small and medium shares worth about 4.18 percent to 365.38 points level.

 

1

Share this post


Link to post
Share on other sites

IMF chief hails Egypt austerity, urges approval of $12B loan

MAGGIE MICHAEL, The Associated PressPublished: November 8, 2016, 2:02 pm
 
 

CAIRO (AP) — The head of the International Monetary Fund praised Egypt’s recent austerity measures on Tuesday and called on the world lender’s Executive Board to finalize a $12 billion loan package to help rebuild the economy of the Arab world’s most populous country.

Egypt’s long-running financial woes have worsened in recent weeks amid a dispute with Saudi Arabia, which provided billions of dollars in aid after the military ousted an elected Islamist leader in 2013 but cut off fuel shipments last month over a dispute related to the Syrian conflict.

IMF chief Christine Lagarde praised Egypt’s decision last week to float its currency and slash fuel subsidies, measures that have hiked the price of basic goods, but which she said would shore up its reserves, attract foreign investment and reduce its budget deficits.

“The Egyptian authorities have embarked on an ambitious reform program to put the country’s economy on a sustainable path and achieve job-rich growth,” she said.

She said she would recommend that the IMF Executive Board approve Egypt’s request for $12 billion in loans when it meets this Friday.

Egypt is struggling to recover from years of turmoil following the 2011 uprising that toppled Hosni Mubarak. Some fear the sharp rise in prices caused by the austerity measures could ignite further unrest, but in the short term they seem to have restored some investor confidence.

Egypt’s shares have risen for a fourth successive business day, with the benchmark EGX 30 index closing up 2.48 percent on Tuesday. The Egyptian pound traded at banks on Tuesday at around 17.75 to the dollar, nearly twice the dollar’s official, pre-float exchange rate. The pound was trading at an all-time low of 18.50 to the dollar in the parallel black market prior to the float.

An Egyptian court meanwhile upheld a ruling by a lower tribunal that annulled President Abdel Fattah el-Sissi’s decision to transfer two strategic Red Sea islands to Saudi Arabia, a move that could further escalate tensions between the two formerly close allies.

Saudi Arabia had agreed in April to provide Egypt with 700,000 tons of fuel a month for five years on easy repayment terms, but Egypt said Monday that the fuel shipments have been suspended indefinitely. Saudi Arabia has not commented on the matter.

Cairo angered the Saudis last month by voting for a Russian-backed U.N. Security Council resolution on Syria that was opposed by Riyadh. Saudi Arabia is a leading supporter of the rebels fighting to topple President Bashar Assad, while Egypt fears the rise of Islamic militants and has pushed for a negotiated solution that might keep him in power.

Egypt has also been working to shore up relations with Russia, which is a key ally of Assad. The halt of the fuel shipments led Egypt to sign a memorandum of understanding on imports from Iraq, which is closely allied with Saudi Arabia’s main regional rival, Iran.

Egypt had announced the transfer of the two islands, Tiran and Sanafir, to Saudi Arabia during a high-profile visit to Cairo by King Salman in April.

Egypt said the islands had always been part of Saudi Arabia, but were placed under Cairo’s protection from Israel in the 1950s. But the decision infuriated many Egyptians, who saw it as a sell-off to a wealthy patron, and the move ignited the largest protests since el-Sissi was elected in 2014.

A lower court has already ruled against the transfer of the islands, saying it was unconstitutional. The government has appealed that decision before three separate courts, one of which upheld the earlier decision on Tuesday. The other two have yet to rule on the case.

Both Saudi Arabia’s apparent reprimand over the Syrian vote and the dispute over the islands have angered many Egyptians.

“These are like adolescents’ policies!” said veteran political commentator and journalist Makram Mohammed Ahmed, who is known to be close to el-Sissi. “Saudis are dealing with the rest of the world as if they are the masters who must be obeyed.”

1

Share this post


Link to post
Share on other sites
90.7 billion pounds weekly gain
Friday 11 Safar 1438 H - November 11, 2016 AD
a7740846-c2f4-4350-a442-7f167af75fc8_16x
  •  
  •  
  •  
Cairo - Khaled Hosni

Egyptian stock indexes posted weekly historic highs, supported the decision of freeing the exchange rate and the floating of the Egyptian pound against the dollar.

And recorded purchases of Arab and foreign investors at historic levels during the sessions that followed the liberalization of the exchange rate of the decision last Thursday, as funds and institutions turned into a purchase after years of careful and Bearish trend in trading.

Egypt's central bank has decided to edit pound exchange rate, and the liberalization of the currency market, prompting investors to enhance performance, returned some of the speculators in the currency market again to the money market, boosting the positive performance of all the Egyptian stock indexes.

According to available data, and during last week's hearings, he won the capital market for the shares of listed companies the Egyptian Stock Exchange about 90.7 billion pounds, an increase of about 21.15%, bringing the end of the trading session yesterday to about 519.4 billion pounds, compared to 428.7 billion pounds at the close Thursday's session trading the past.

In terms of indicators, the main index "EGX 30" jumped to the level of 10,688 points, adding about 1877 points, representing the ratio of 21.31%, the highest pace of the rise of a weekly ever in the Egyptian Stock Exchange history, jumping from about 8810 points to close last week's trading, to score 10688 points toward the close of trading yesterday's trading session.

As small and medium-sized stocks, "Eiji X 70" index rose by 15.14%, adding about 53 points, having reached the end of the trading session yesterday to the level of 403 points, compared to about 350 points to close trading last Thursday.

The gains extended to the broader index "EGX 100", which rose by 19.22%, equivalent to about 158 points, having risen from the level of 822 points at the closing session of last Thursday's trading, reaching the end of the trading session yesterday to the level of 980 points.

Acquired by Egyptian investors trading on the proportion of 79.8% of the total trading during the week, while the acquired foreign and Arab investors trading on a ratio of 13.6% and 6.6% respectively. While trading institutions accounted for 58% of stock market trading during last week's hearings, net my order billion pounds, while individuals accounted for the 42% of the transaction to sell me a net worth of one billion pounds, also.

1

Share this post


Link to post
Share on other sites

1-892089.jpg

Bank recommended buying treasury bills for six months without a hedge.
 
 
  •  
  •  
  •  
  •  
  •  
  •  
 

Abu Dhabi - Sky News Arabia

In a sign of improving confidence of foreign investors towards Egypt after floating its currency, analysts said the bank, "Bank of America" Merrill Lynch, said he recommends buying Egyptian treasury bills.

Foreign investors were snapping up Egyptian bills until 2011, before the unrest that caused the confusion over the exchange rate and the economic situation.

The bank added that the Egyptian permits usually being withheld until the maturity date, and it will enter the market at 16.5 pounds, the exchange rate of the dollar in the hope of recovering the currency to 15 pounds.

Bank analysts said in a note dated November 11 they would recommend the purchase of treasury bills for six months without a hedge, to take advantage of high-yielding, Marjaheen that the decline in the pound has reached its range against the dollar in the first days after the liberalization of the exchange rate in the third November.

 

1

Share this post


Link to post
Share on other sites
 
 
10858.jpg
   
Economy News / Continue ...
 
 
Tarek Fayed and Deputy Governor of the Central Bank of Egypt, Monday, said the country's banks received about $ 3 billion since the float the pound earlier this month.
On the third of November, the central bank announced the abandonment of the currency peg at about 8.8 pounds to the dollar, a move that hopes to attract foreign cash flows and eliminate the black market for dollars.
 
The currency peg and declining foreign investment after the revolution of 2011 to the depletion of foreign reserves at the Central Bank, including forced him to rationalize dollars before the flotation.
 
He said Central Bank Governor Tarek Amer said in remarks published by a local newspaper last week that Egyptian banks have attracted about $ 1.4 billion in the first week following the liberation of the exchange rate.
 
 
mm
Views 108   Added 21/11/2016 - 12:59   Last updated 11/22/2016 - 07:28   No. Content 5884
1

Share this post


Link to post
Share on other sites

1-899147.jpg

Egypt has floated the pound in November
 
 
  •  
  •  
  •  
  •  
  •  
  •  
 

Abu Dhabi - Sky News Arabia

Egyptian President Abdel Fattah al-Sisi, said Thursday that the current price of the US dollar against the Egyptian pound, "the fair price is not real."

Egypt is going through in recent years amid an economic decline in the budget deficit, rising inflation and declining production companies and factories, and a lack of hard currency in light of declining tourism and investment rates.

Egypt was, to rely too heavily dependent on imports, the in November to float the Egyptian pound and abandoned its peg to the US dollar spent.

Sisi said in his speech during the celebration of the birth anniversary of the Prophet, "the dollar will not last so much ... That's not true at its fair price 17 or 18 (pounds) ... balance will take a few months," according to Reuters.

 

1

Share this post


Link to post
Share on other sites
 
 
11728.jpg
   
   
separator.gif
Economy News / Continue ...
 
 
 
The governor of the Central Bank of Egypt, Tarek Amer, said the black market for the currency in the country would not "immediately disappear once the use of the magic wand flotation."
Egypt surprised the market on the third of November, when it canceled the pegging the pound to the dollar in a move aimed at attracting capital inflows and undermine the black market currency that almost solved banks Mahal.
 
Amer said, in an interview with Al-Ahram Economic Journal, said that it takes time to completely eliminate the black market, he said, adding: "The market will take care of itself and settle down in the coming period."
 
And helped edit the exchange rate of the British government, which suffers a shortage of liquidity on the conclusion of an agreement for the loan program worth $ 12 billion with the International Monetary Fund hopes to revive growth, which was adversely affected by political unrest since the revolution of January 25, 2011 that ended the rule of Hosni Mubarak.
 
Amer said: "Although the return of the black market, but the real cornering the market share of banks has become .. banks acquired the salvation of the market (...) compete with the black market is very limited."
 
"The differences in the dollar interbank rate and the black market is very limited and does not exceed Karoha."
 
A trader in the parallel market, at the weekend, said that the purchase price of the dollar stood at 19.70 pounds and 20.10 pounds selling price.             
 
But according to the latest prices on the trading screens in banks in Egypt and Al-Ahly of Cairo and of the government, on Tuesday, the price of dollar buying 17.90 pounds and 18.15 pounds selling price, as the three banks controlled by the movement of the dollar rate between banks in Egypt.            
 
 
 
Views 14   Date Added 03/01/2017 - 11:32   Last updated 01/03/2017 - 13:31   No. Content 6330
1

Share this post


Link to post
Share on other sites
Just now, yota691 said:

said the black market for the currency in the country would not "immediately disappear once the use of the magic wand flotation."

It will never go away....

1

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0

  • Recently Browsing   0 members

    No registered users viewing this page.