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

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Economy News / Continue ...
 
 
The Central Bank of Egypt, Thursday, rising foreign reserves of the country to 24.265 billion dollars at the end of December from 23.058 billion the end of November last year to hit the highest level since 2011, approaching from the previous target of the Central Bank and the level of $ 25 billion.
Recent figures indicate that the cash reserves rose by 1.207 billion dollars last December, after a month of editing pound exchange rate decision.
 
The government surprised the markets on 3 November last year to this resolution that allowed abandon pegging the pound to the US dollar, in a measure designed to attract foreign capital inflows and the elimination of the black market.
 
It is expected to encourage the liberalization of foreign currency investments, exports have been increasing, and enables companies to get a dollar from the banks at market prices, including return it for full production after the cut in production processes during the last period due to non-availability of the dollar needed to buy raw materials.
 
Bankers said the importers told Reuters that banks have already provided all importers of basic and non-basic goods requirements during the last month.             
 
The Egypt has about $ 36 billion of foreign exchange reserves by January 25, 2011 revolution that toppled President Hosni Mubarak. It was ushered in a period of political turmoil that kept the tourists and foreign investors.
 
 
 
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Views 4   Date Added 05/01/2017 - 12:25   Last updated 01/05/2017 - 12:08   No. Content 6363
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A new round of bonds raises warnings from the rush of Cairo to borrow

January 17, 2017 in the media center  on the new round of bonds raises warnings from the rush of Cairo to borrow closed

 

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Egyptian economists warned of the repercussions of unbridled wave of borrowing on the future of the country's economy, at a time when borrowing wave spread in most of the Arab countries to reach most of the rich countries.

No one expected years ago that Saudi Arabia enter this club, because of the large financial reserves, but has entered strongly in October last year and collected about $ 17.5 billion through a bond offering in the international markets.

Analysts saw this subtraction, qualitative development trends in credit markets in the region. It has already led to the postponement of Egypt plans to borrow abroad for about two months, after the market has been saturated with those bonds.

Cairo and has been closely monitoring the appropriate time to complete the series in order to borrow large deficit in financial resources to cover, as a result of slowing economic growth and drought and foreign private sector of the tourism currency resources.

And he warned security Hilmi, Head of Economic Studies at the Faculty of Economics and Political Science at Cairo University, the high borrowing rates from the outside and the burden placed on future generations.

She told "Arabs," "The Egyptian government justify it now, as in the past major national projects will further attract investments in the coming period, which is expanding to fill the huge financing gap until reap the benefits of these projects."

Arab Union for direct investment and investment gap as needed by the Egyptian economy to recover from the current collapse, about $ 50 billion a year for about five years in a row.

It is known that higher borrowing rates are not calculated puts the economy in trouble, and that the rating agencies closely monitor the debt-to-GDP rates periodically, and if the economy continued to climb put under surveillance.

Hence Egypt need to order their leaves and overcome the obstacles that prevent the flow of foreign investment, rather than the use of international institutions in the certificates to get more loans. 
Amr Garhi: we aim to attract investments worth ten billion dollars through treasury bills

And kicks off Tuesday from the UAE the largest promotional tour of the bonds they intend to put Cairo in global markets, where you want to borrow about $ 2.5 billion before January 25 next solutions, which marks the sixth anniversary of the revolution that broke out in 2011.

The Egyptian government continues its campaign to various financial markets in London and the United States to search for new investors to market its bonds, taking advantage of the confidence of the International Monetary Fund in the economy.

The IMF agreed to grant Egypt a loan of $ 12 billion to 3 years, and reached the first batch him to Cairo during the month of November last year valued at $ 2.75 billion, and is expected to reach the second installment, which will be reduced a little bit about two billion dollars during the next spring.

He said Amr Garhi finance minister in Egypt, we are targeting to attract investments in treasury bills during the current year by about ten billion dollars.

He said in a statement to "the Arabs" that foreign investors have bought Treasury bills by about one billion dollars so far, an indicator reflecting confidence in the economy's ability to grow, reflecting the extent to respond to the new policies.

Ahmed said Kojak Deputy Finance Minister fiscal policies for "Arabs", "We'll show the marketing of these bonds on about 100 investment fund in the Arab region and in the global markets."

President Abdel Fattah al-Sisi received last week a delegation of 27 representatives of the investment fund and financial portfolio of the United States and the United Kingdom, France, Germany, South Africa and the Gulf states.

She stressed EFG-Hermes, that the meeting was organized on the sidelines of the conference, "the Egyptian economy between horizons and new opportunities", and that these funds manages investment assets around the world exceed $ 3.5 trillion.

Soaring borrowing rates from the outside to the high cash reserve with Egypt's foreign currency to 24.26 billion dollars.

And it borrowed the central bank two months ago, about two billion dollars through a bond offering in the Irish Stock Exchange.

The Minister of Finance then that this trend aims to diversify its borrowing sources to cope with the continuing deficit in the general budget of the country. He warned Mustafa Ibrahim, deputy head of the Egyptian Chinese Business Council, the expansion of borrowing, pointing out that the risks can be costly to the economy.

He told "Arabs," "I find a broad smile on the faces of officials after the granting of loans to Egypt, international institutions, while these loans are debts must be repaid."

He noted with regret that officials have become efficient is measured by their ability to seize foreign loans rather than seeking to increase production rates and solving the real problems that promote investment opportunities.

Arabs London

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Egypt issue international bonds to cover the deficit in the budget

Are GMT 18:15 2017 Sunday, January 15
 
 

Arabs today - Egypt issue international bonds to cover the deficit in the budget

Egypt is aiming to issue international bonds worth between two billion and $ 2.5 billion
Cairo Arabs today

 He said Egyptian Finance Minister, Amr Garhi Sunday January 15, Egypt is aiming to issue international bonds worth between two billion and $ 2.5 billion in the promotional tour begins this week.

Garhi He added that the tour will begin on Monday in the United Arab Emirates, and then move to the United States and Britain to conclude on 24 or January 25. He was scheduled to tour departs in November, but was delayed due to market turmoil.

Garhi He added that Egypt is working to curb the budget deficit, expected to reach about 10.1% at the end of fiscal year 2016-2017.

The Egyptian minister pointed out that the benefit of the loan of the International Monetary Fund to Egypt between 1.5% and 1.75%, though each slice repaid in ten years.

The IMF agreed last year to grant Egypt a loan of $ 12 billion for a period of 3 years, Cairo has received from him last November $ 2.75 billion.

The loan aims to support the economic reform program, developed by the Egyptian authorities, and the development of the budget deficit and public debt on a declining path, and give a boost to economic growth in Egypt.

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Egypt expects $ 11 billion in foreign investment in bonds

Are GMT 00:27 2017 Tuesday, January 17
Arabs today - Egypt expects $ 11 billion in foreign investment in bonds
Garhi Amr and Finance Minister
CAIRO - Arabs today

Predicted Egyptian Finance Minister, Amr Garhi , that foreign investment in the Egyptian treasury tools to rise to 10-11 billion dollars in a year where economic reforms contribute to strengthening the confidence of investors.

Important foreign investors in bonds and treasury bills offered by the Egyptian government and was a major source of hard currency before the 2011 uprising, which toppled former President Hosni Mubarak.

And it contributed to the decision of the Central Bank of Egypt on the third of November last year in deciphering thepegging the pound to the dollar at 8.8 pounds compared to the US currency, after Egypt announced the liberalization of theexchange market and to float the pound.

And it contributed to the flotation process in reviving Egypt's reserve of foreign exchange, but still below the levels of 2011 by far, reaching, according to data of the Central Bank of Egypt about $ 23 billion compared with about $ 36 billion before the start of the revolution of January 2011.

Bankers estimate the current level of foreign investment in the Egyptian treasury instruments including no more than a billion dollars. 
And it helped float the pound and other reforms , including the reduction of support for electricity and the imposition of new value - added tax on a government loan program to a deal worth $ 12 billion from the International Monetary Fund.

It is expected that it also attracts more flows from foreign investors.

He Garhi told him, Sunday, that the arrival of $ 10 billion will be gradually making sure that the program of economic reform measures are gradually and properly. 
He continued , "When people see that we achieve good results in the reform program more than a desire to pump investments, so it is possible within a year to those levels up to 10 or 11 billion dollars."

He Egyptian Finance Minister that his country will begin promotional tours around the international bond issue worth two billion dollars to 2.5 billion dollars, and that subscriptions have already started up, revealing that promotions will begin in the United Arab Emirates and the United States, the United Kingdom is expected to be completed in 24 or 25 January.

He continued: "Our forecasts indicate acceptable revenue figures, and that a small segment of the bond may be for 30 years." 
Garhi stressed that Egypt is working to control the budget deficit but adjusted its forecast for the deficit in the fiscal year 2016-2017 to 10.1%.

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Egypt begin marketing three-issuing international bonds

economy

 Since 24/01/2017 14:09 pm (Baghdad time)

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Follow-up scales News

Bankers said that Egypt on Tuesday began marketing dollar-denominated bonds issued in the standard size on three segments of a yield of between 6.375 and 8.875 percent.

The document containing the guiding principle of the bond prices showed that created slide of five years of international bonds being marketed yield of 6.375-6.625 percent.

It is marketed decimal bond yield slice 7.625-7.875 percent, while the yield on the bond segment stood for 30 years 8.625-8.875 percent.

Egyptian officials have said they are targeting the issuance of international bonds worth between two billion and $ 2.5 billion on the eve of the promotional tour that began last week in the United Arab Emirates and included meetings with investors in the United States and the United Kingdom.

It is scheduled for the inclusion of bonds in the Luxembourg Stock Exchange. The IPO and management BNP Paribas, Citigroup, JP Morgan and Natksys.

Egypt was planning to start a roadshow for the bond in November but postponed due to market fluctuations.

And seeking the country, home to more than 90 million people to get funds from various sources, including development grants and loans and foreign aid to meet their financing needs in light of the difficulties it faces due to the scarcity of the dollar, which hampered its ability to import.

The central bank gave up linking the Egyptian currency at about 8.8 pounds to the dollar in November and raise interest rates 300 basis points in the hope that this will lead to attract flows of currency and restore foreign investors who are reluctant to the country after an uprising in 2011.

And it helped float the pound Egypt to conclude a loan of $ 12 billion from the International Monetary Fund to support its plans to conduct extensive economic reforms deal. And it contributed to the fund agreement and the liberalization of the exchange rate in the rise of the Egyptian Stock Exchange to their highest levels in several Snoat.anthy 29 / A 43

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Maybe the reason Egypt is in such dire straights with their electronic Egypt Economy (e-commerce, e-banking, e-this, e-that, e-you get the idea) is due to the name itself. The Egypt Economy (pronounced E-Jipped E-Con o'(on) me) may just scare the daylights out of potential e-investors. :o

Just a thought and my :twocents:

Go Moola Nova!

:twothumbs:

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Egyptian Stock Exchange opens higher

 
 
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Economy News / Continue ...
 
 
 
Most Gulf stock markets fell in early trading Thursday, amid lack of stimulating news to buy, since most of the transactions were concentrated in Dubai on the shares of the second category rather than leadership, while bourses rallied Egypt and Qatar.
The Dubai index fell 0.3 percent, with the decline in shares of Emaar Properties heavyweights 1.2 percent, but six out of the ten most actively traded stocks rose, by at 08:16 GMT.
 
The decline in the general index of the Abu Dhabi market with a decline in shares of telecommunications companies 1.9 percent, after the holding company to rival "du" said earlier, it launches "Virgin" Mobile services in the United Arab Emirates.
 
At the same oriented, Kuwait's main index fell B0.31 percent to 6826 points, also Kuwait 15 index fell by 0.93 percent to 978 points.
 
In Qatar, increasing stock index 0.3 percent as shares of banks and rising Qatar National Bank 1.9 percent, as quoted by Reuters.
 
And the opening of the main Egyptian index, trading as high B0.12 percent to 12,599.1 points, while the secondary index increased 0.76 percent to 486.14 points.
 
 
 
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Views 8   Date Added 02/02/2017 - 13:22   Last updated 02/02/2017 - 14:21   No. Content 6631
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Egypt throws herself into the unknown

 

 

   
 

 
 


6/2/2017 0:00 

Jean-Pierre Sereni 

We have read the text on the agreement between Egypt and the International Monetary Fund in August. And it seems that the loan will be able to cover almost the whole next year, but it will not cover the following two years, as Egypt is still in need of more than $ 15 billion ... which is not a modicum, in light of the reluctance of the United States and the Gulf property systems for payment .

The International Monetary Fund has published on the seventeenth of January 2017 the text of the agreement reached with Egypt last August, amid a general climate of indifference. The Al - Ahram newspaper published the official daily barely a small statement on the agreement, while not Taaraa international press almost any interest, and merely Gulf press a few articles do not mention. 
However, the documentation for the "Memorandum of Understanding on economic and financial policies , " enough to see the details of the agreement: to lend the International Monetary Fund and Egypt more than $ 12 billion over three years, to be paid in six installments, that Egypt is committed to carry out deep reforms in the field of exchange rate monetary, financial and social policies and those of the business environment. Can the IMF to refrain from handing Egypt the rest of the payments that failed to meet those conditions, as happened with Ukraine in 2016. 
From now on, the military regime wants its economic policy management itself cruelty which was designed by the eradication of the Muslim Brotherhood from political life . 
While it was Hosni Mubarak adopts a half - solutions and pursuing a policy of containment, it seems that the current president firmer. "We are rectifying the path of the Egyptian economy by taking action puts a real basis for building the state that we want in the coming years." This is what he said Abdel Fattah al- Sisi in his meeting with editors of three national newspapers, adding: "If we had the same situation we continue for a year or two years to become more severe situation." The collapse of the Egyptian pound liberalization of the exchange rate decision, which was a stroke on the third of November last, to lower the price of the pound 100 percent so that the dollar has become, overnight, equal to 18 Egyptian pounds, after it was equal to 8.8 pounds. " The value of the pound has dropped a little more than we expected after the floating exchange rate." This was announced by British economist Chris Jarvis, head of the IMF mission to Egypt, Mtuareh Kaahdh terms, he was writing letters of Dominique Strauss - Kahn, the time that this was the last director general of the International Monetary Fund. Waiting for corrective actions anticipated, supposed that the central bank receives from the International Monetary Fund and the World Bank and a number of multilateral institutions loans worth $ 12 billion during the current year. It is an indication of the current crisis, the United States did not contribute, or any of the Gulf property systems ( with the exception of the United Arab Emirates) the loan, other than the major European capitals. But if the outcome of the foreign exchange reserves collected by the central bank, or on the way to collect, given the "new foreign exchange market" kiss of life and provide protection of the Egyptian pound, access to the rest of the loan payments in the next two years that is not certain, it is subject to the extent of respect the Egyptian government to the commitments contained in the memorandum of understanding, so that they can get the loan in full, without losing sight of the security situation in the region , of course. The Egyptian consumer, it has fully bear the cost of the losses that resulted from the collapse of the national currency, refer to the latest statistics published in December 2016 to the rising cost of living by about 30 percent and IMF experts expect lower inflation rates before the second half of this year. Despite the lifting of the state of the value of officially earmarked for the poor and disabled registered financial aid has, but there are more than 20 million citizens, or 35 percent of the population - is the poverty rate in Egypt as a gift Laithi says.  They had to face a wave of price rises on their own, without any government intervention to rescue them, except a symbolic action for the benefit of the few that are subject to taxes on income. Nor was it expected that the pharmaceutical industry is witnessing a rise in prices, where drugs have been subject to pricing. However , the Minister of Health made the decision to raise the price of drugs by 50 percent on average, so pharmacists subject to threats of a strike, and wave the pharmaceutical companies to stop importing. Moreover, fuel prices rose by 35 percent, but the government continues its support by 44 percent and are expected to see the waves again rise to ease the burden on the public treasury and the only sector that is still resisting the repeated hikes is the higher education sector, it is scheduled to rise university fees, except for , of course , universities, and hopes workers at the Ministry of Higher Education. The budget deficit, and other pest there is no room for complacency in regards to reducing the budget deficit, and other crisis facing the Egyptian economy, if the government wants to meet its obligations to cut the deficit to reach its 12.1 percent of GDP in the year 2015- 2016, to 4.7 percent in the fiscal year 2020-2021, and thus reduce the public debt from 95 percent to 78 percent of GDP in the same period. To achieve that goal, the government adopts austerity measures is to reduce wages and cut energy subsidies and commodity ration pack, in addition to raising taxes. Egypt 's history may raise doubts about the financial and political will for "tuning" of government accounts, especially with the benefit of achieving the treasury bills offered by the government for three months , 19 percent rate. But, assuming that the current ruler , better off than its predecessors, remain open workout tight.  Egypt must do more so that it can get hard currency, not relying on foreign loans, but the export and tourism revenues and Suez Canal. Also it will not be easy to reduce the deficit in the current account balance, which of between 6 and 7 percent of gross domestic product; where it is expected that the trade deficit remains high until 2018-2020 at the earliest. "The price factor is not the greatest master of the current account balance deficit in the current time. The crisis experienced by the tourism, which accounted for 20 percent of state revenues in 2010 sector, related mostly to security reasons, also will be affected by the Suez Canal revenues (9 percent of state revenues) violent fluctuations in global trade. It is not expected to stop the growing deficit in the energy sector ($ 3.6 billion in 2016, or 20 percent of the current account deficit, compared with a surplus estimated at $ 5 billion in 2010), but by 2018, with the entry of gas fields b natural "appeared" and the Nile Delta "into production, according to Pascal Defoe from the bank" BNP Paribas ". Confidence remains rare coin in Egyptian society, even among the elite. After the boom had not been interrupted since the decision to float on 3 November, the Egyptian Stock Exchange witnessed in January 19 last , "Khamisa Black," in which speculators have more than a billion dollars in a single session, had to be terminated quickly.  Egypt is the Arab country the fifth, with Morocco, Tunisia, Jordan and Iraq, it entered into an agreement with the International Monetary Fund in 2016 worth more than $ 21 billion, which is an additional indicator of the crisis faced by those countries in the wake of the Arab spring.

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Banking expert: Egypt's central bank actions successful .. and the dollar back down again within days
   
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(Seventh Day) -18/02/2017

Tamer Youssef, head of treasury sector , one of the foreign banks said that there is a growing demand on the part of dollar holders to sell it in the bank for fear of the continuing decline in the US dollar against the pound, and this is due to the successful central bank action, marked by the package of measures, the most important economic restructuring to shift from a consumer economy to a productive economy, as well as adjust the indiscriminate import process. 
He said banking expert, in his remarks, that the supply of the dollar in the recent period rose amid weak demand, as supply has increased due to foreign revert to local debt market (Treasury bills) affection in the same turning point, and demand is weak Ahan package Central procedures and the government to regulate practical import , which began last March, also cut the pound and inflation reduced the purchasing power and therefore less demand for the dollar. 
The Tamer Youssef - that the banks covered all outstanding requests and surpluses and the interbank market to start working again, and then natural that the dollar decline and confidence is beginning to return to domestic investor, The entry dollar holders to waive the banks, Valmarod increased The price came down , and so, as long as there are flows of both foreigners to buy debt instruments or the Egyptians will continue to fall until demand recovers. 
He pointed out that under a free exchange system, interacts with the currency rate and market data along with supply and demand, and helps to absorb economic shocks in the case of the efficiency market (market depends on efficiency). 
He continued, promises tourism with attracting foreign direct investment and import substitution and the development of export - oriented sectors of the state Haouselna of the target zone (target area) , which is investigating the monetary policy is supposed targets compatibility Maa goals of the government in restructuring the Egyptian economy affection is the challenge Elly our Elly beyond Central will target inflation and the stability of Price as one of the most important objectives of monetary policy following the targeted growth. 
He said Yusuf investments indirect (foreign investment in debt instruments) always be a precedent and a key phase before the direct FDIs investments, to test the ease of entry and exit from the market direct investments important for the growth financing and bridging the funding gap which needs to create an economic and regulatory environment and the fight against bureaucracy and corruption , which needs a lot of work, and still bonds, loans and long - term , mostly this saves the state the time needed to attract investment Elly flows through which repayment obligations.

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Egyptian Central: ends of the preparation of the new law

 

 

   
 

 
 


2/26/2017 0:00 

Follow - up / Shokran Fatlawi 
fear Egyptians to buy hard currency despite the improved outcome dollar from banks and 
Governor of the Central Bank of Egypt Tarek Amer said that the central finalized a new law on banks and would expose him soon to the Cabinet and then the House of Representatives for approval and will include law governance rules to spur banks to censorship, pointing that " by the end of this year will be able to buy the dollar citizen from the banks freely." 
In the face of a deepening budget deficit , Egypt began a series of economic reforms, taken steps to reform its monetary policy and an end to energy subsidies and easing of capital restrictions. 
The free Central Bank pound exchange last November in a bid to attract foreign capital , which encouraged the International Monetary Fund approved later that month to finance a three - year $ 12 billion agreement price 
and the positive effects of the liberalization pound exchange last November price Amer said " the banks have received $ 13.5 billion since the liberalization of the exchange rate in the same month , mostly from the Egyptians." 
Egypt core inflation rate jumped to its highest level in more than ten years at 30.86 percent in January with the economy affected by the repercussions of the floating currency and austerity measures approved by the IMF. 
The flotation led to a decline in the local currency exchange rate from 8.8 pounds to the dollar to about 20 pounds in December , the price before the pound recovered some recently recovered to around 15.85 pounds to the dollar. 
The central bank governor has sought to reassure Egyptians , saying "inflationary shock already occurred will not be to liberalize the exchange rate effect on inflation again." 
It is said that Egypt will take place in March on a billion dollars from the World Bank represents the second tranche of a loan of three billion dollars , it aims to support the reform program of 
 economic development .
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Sisi reveals what he said interior minister before making his decision to float the pound

21 minutes ago | Wrote: Bassam Ramadan |
 
 
The word Sisi during the youth conference in IsmailiaThe word Sisi during the youth conference in

President Abdel Fattah al-Sisi said that he had made a reservation in the establishment of popular committees in any province to counter terrorism, stressing that what is needed is awareness «so that things are under control, and we have to all of us remain Jaivin the country», revealing at the same time what he said Interior Minister, Major General Magdi Abdel Ghaffar , before taking his decision to float the pound last year.

 

This came during a meeting Sisi group of 150 young people from the cities of the Canal and the Sinai within the activities of the National Youth Congress in Ismailia, and said that «the administrative procedures difficult in all Egypt, because they rely on humans only, and the sensitivity of the situation in the Sinai entails many difficulties, the security services are proactive in proving the nationality of any one living in the Sinai, because citizenship entails other things like owning land in the Sinai. »

 

And Abizaid: «We have a comprehensive map for the development of airports and ports in Egypt», spoke at the same time the administrative apparatus of the state, saying «Egypt needs only 20% of workers in the government sector in the state, the increasing population growth in Egypt hinders the provision of more job opportunities.»

 

He said that «the state is trying to provide real job opportunities for young people, and it was easy for me and gentlest I Mkhaddh real reform measures, and I Mqulc sit on the mess, and we have to take the difficult procedure and painful Ashan cousin Mtamrh, and the Egyptians Asthmiloa all the harsh measures, because of de Hikon tomorrow better and better, and we We do not sell the illusion of the people », adding:« the interior minister told me Nagl reform measures after 11 November 2016 the best of people dropped off, but I Brahn the Egyptians always, eh important in maintaining the popular country ruined, and we are required cousin Amranh, or walk better. . we are Hnaml difficult to measure the harsh and painful Elly Hibaki through it a better tomorrow .. and patience has value .. and we are what Npiash illusion people ».

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CNN. Broadcasting From Bumfuq, Egypt While Wondering What Iraq With The Worlds Third Largest Oil Reserves Can Do ?

 

 

 

http://economy-news.net/conten.....hp?id=7665

 

Egypt : 25 billion dollars, the proceeds of bank banks since flotation


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30/05/2017 - 4:18

 

Confirmed the Governor of the Bank of the Central Egyptian, Tarek Amer, the size of the concessions for the dollar in favor of the banks rose to about 25 billion dollars since the decision to release the price of the exchange pound in October the second .

And gave up the bank 's central for linking the price of exchange currency local at about 8.8 pounds to the dollar in the third of October the second that led to a decline in the value of the pound to about half .

The aim of this step is the launch of flows of currency foreign and end market black , which absorbed the currency of foreign from the system banking .

It showed the statement of financial for the budget year fiscal 2017-2018 in Egypt, that the deficit of the budget during the first 9 months of 2016-2017 , may decline as compared to the period corresponding to 2015-2016.

Making Egypt efforts actively to revive its economy from during the liberation rate of exchange and the adoption of a number of laws that aim to attract investors foreign to the country from new.

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http://economy-news.net/conten.....hp?id=7672

 

 

 

Raise interest brings billion to Egypt in two days


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30/05/2017 - 4:17

 
The Central Bank of Egypt Governor Tarek Amer, on Monday, that Egypt has received a billion dollars, in the form of investment flows in just two days after the rate hike decision last week, as reported by the official news agency Middle East.
 
The central bank raised key interest rates 200 basis points last week, referring to promote economic growth and falling unemployment in the first increase since November, when the bank raised interest rates 300 basis points.
 
Egypt is suffering from a severe financial crisis after the decision to float the pound against the dollar several months ago.
 
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Thanks Thug for the article above...

2 hours ago

Egypt banks provided $ 35 billion since the "floating"

2017-05-31T08: 45: 43Z
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Egypt freed pound 3 last November, the exchange rate
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Abu Dhabi - Sky News Arabia

Deputy Governor of the Central Bank of Egypt, Tarek Fayed said in a statement Wednesday, the banks operating in the country provided about $ 35 billion to meet the needs of customers and management of documentary credits since the liberalization of the exchange rate and May 25.

Egypt decided to release the pound exchange rate in the third of November last year in a bid to attract foreign flows.

 
 

The central bank said in the statement that it was "the payment of the collection of documents and letters of credit by about $ 25 billion, and the opening of letters of credit by about $ 10 billion."       

Egypt is making unremitting efforts to revive its economy battered since the revolution of January 25, 2011 through the liberalization of the exchange rate and gradually raise the support and approval of a number of laws aimed at re-attract foreign investors.

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Egypt raises fuel prices by up to 100%

 
  • CAIRO - Reuters
Date:June 30, 2017
image.jpg
 

The Egyptian government yesterday raised fuel prices in the country by up to 100% in some products as part of its plan to support the restructuring of petroleum products. This is the second time the government raises fuel prices during the eight months after it filed last November at rates ranging between 30 and 47%.

Said Oil Minister Tariq al-Mulla said the government raised gasoline 92 octane to the price of 5 pounds (about $ 0.28) per liter of 3.5 pounds, up about 43% also raised the price of gasoline 80 octane to 3.65 pounds from 2.35 pounds, up about 55%. The increased price of gasoline 95, which is sold at world prices already, slightly to 6.60 pounds per liter of 6.25 pounds, up 5.6%.

Egypt raised the price of diesel about 55% to 3.65 pounds per liter of 2.35 pounds. The price of auto gas increased 25% to two pounds per cubic meter of 1.60 pounds.

The largest increase in the price of cooking gas cylinder (LPG), which jumped 100% to 30 pounds from 15 pounds. The government also raised the price of commercial cooking gas cylinder 100% to 60 pounds from 30 pounds.

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Why?

 

Why would they do that?

 

What am I missing?

 

What does that do to help the Egyptian economy?

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GMT 15:38 2017 Thursday, July 6 : Last Updated
 

Cairo : Egypt announced Thursday raise electricity tariff for house holds rates ranging between 18% and 42%, at time country implements program economic reform approved which International Monetary Fund to grant Egypt loan of $ 12 billion.

The Minister of Electricity Mohamed Shaker for new increases, which will enter into force starting from the month of July this, at a press conference in Cairo.

Shaker said that "the current financial year imposed next financial year we finish completely out of support (on electricity) due to the special circumstances of the large increase in the exchange rate developments we decided to extend this period to three additional years."

The minister pointed out that the increases will vary according to the chip consumption.

Shaker said that the government subsidy on electricity will be completed by the fiscal year 2021/2022.

In an attempt to revive the deteriorating economy since the overthrow of President Hosni Mubarak in 2011, Egypt decided to get a loan from the International Monetary Fund $ 12 billion enclose the application of harsh economic reforms.

The announcement of these increases a few days of cutting subsidies on fuel after.

On June 29 last, the government raised the price of 92 liters of gasoline by 43% to record five pounds (US $ 0.27) and the price of 80 liters of gasoline at least quality by 55% to 3.65 pounds (US $ 0.2).

The increased price of diesel (diesel also) increased by 55% to record 3.65 pounds per liter, while doubling the price of butane gas cylinders for up to 30 pounds (US $ 1.6).

The government in November last year by editing the pound exchange rate, resulting in the rise in the US dollar from 8.8 pounds to about 18 pounds.

This step was followed immediately cut the proportion of fuel subsidies led to a wave of unprecedented high prices of goods and services in Egypt, the largest Arab country in which live about 92 million people.

These measures have led to an unprecedented surge in the prices of goods and services exceeded the annual inflation rate at the end of 2016, 25% continued to increase that reached a record level in April 2017 boat 33%.

To protect the poorest and most low-income people, the Egyptian Ministry of Finance recently announced an increase of financial allocations for the program of social protection for up to 75 billion pounds (about 4.1 billion dollars)

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GMT 13:04 2017 Wednesday, July 19 : Last Updated
High cash reserves and increase worlds remittances

Economic reforms in Egypt bear fruit

Sabri Abdel-Hafiz
  • eco%20egy.jpg
    The Egyptian economy is recovering
 
 

Despite the suffering of the Egyptians, especially the children of the poor and middle classes, economic reform measures, but there are indications that the Egyptian economy is starting to recover from the crisis that has befallen since the outbreak of the revolution of January 25 2011.

Elaf from Cairo :harsh economic measures takenEgyptian government, pursuant totermsWorld Bank for a loan$ 12 billion, which beganbear fruit. DespitesufferingEgyptians, especiallychildrenpoor and middle classes, from high prices, but thereindications that the Egyptian economymoving inright direction.

According to the Central Bank of Egypt data, foreign exchange reserves rose by the end of last June to $ 31.3 billion, the highest level since the revolution of January 2011. The amount of foreign exchange reserves of $ 36 billion before the revolution, and the toppling of former President Hosni Mubarak's regime.

Egyptians working abroad, remittances also rose, in the month of May, about 11.1% to 1.7 billion pounds, compared to about $ 1.5 billion in the same month last year.

He said the central bank in a report that preliminary data show that the Egyptian workers' remittances increased during the period from November 2016 until the end of last May by $ 1.1 billion to record about $ 11 billion, compared to about $ 9.9 billion, in the corresponding period.

Tribute from the International Monetary Fund

For his part, he praised the economic reforms of the International Monetary Fund, announced his agreement to grant Egypt the second installment, worth $ 1.25 billion, from a loan with a total value of $ 12 billion, completed its procedures within three years.

Egypt got the first tranche of the loan worth $ 2.75 billion over the past months. The IMF said in an official statement, said that its Executive Board approved the transfer of the second tranche of Egypt, after the measures taken by the government to cut fuel subsidies as part of its economic reform program.

Said David Lipton, Deputy Executive Director of the Fund, following the approval of the Executive Council: "The reform program of the Egyptian economy has begun a good start, with the liberalization of a smooth exchange rate ended the existence of the black market, high foreign exchange reserves, reduce energy and wage structure support, as well as the adoption of value tax added. "

Lipton added that the financial improvement will lead to increased confidence in the economy and the resulting decline in debt in the future. He explained that the immediate priority of the government is to reduce inflation, which poses a threat to macroeconomic stability and hurt the poor.

He also noted that the Central Bank of Egypt has taken important steps to curb inflation by raising interest rates and the withdrawal of excess liquidity.

The Director General of the International Monetary Fund, Christine Lagarde, the approval of the second tranche of the loan show "strong support for the International Monetary Fund, Egypt in these efforts," continued: "We believe that these efforts will lead to results."

She added: "The government and the central bank has taken appropriate measures to curb inflation, reduce the budget deficit, and put the Egyptian economy on the path of stability and growth."

Reducing the budget deficit

According to economic expert statements, Salahuddin Saeed, a professor of economics at Cairo University, the tribute to the International Monetary Fund officials and economic reforms is a good indicator, pointing out that those paying tribute means that the Egyptian economic moving in the right direction, and that the Egyptians will reap the fruits soon.

He added "Ilaf" that the actions suffered by the Egyptians were very necessary and long overdue, noting that the lifting of the gradual support for goods, fuel, electricity and gas, and the imposition of value-added tax aimed at reducing the budget deficit and reduce public debt.

He pointed out that these measures will give confidence in the Egyptian economy, and increase growth rates and attract foreign investment, thereby contributing to the elimination of unemployment, increased spending on education and health.

The economist said Mohamed Husni, a professor at Al-Azhar University, said that the Egyptian economy will achieve a clear growth, and feel the Egyptians to improve over the next few years, noting that the tribute to the International Monetary Fund procedures reform is a certificate of guarantee to foreign investors, that the Egyptian economy is good and that the investment climate is encouraging .

Attracting foreign investments

He explained that these measures will lead to increased exports and to attract new foreign investment, pointing out that President Abdel Fattah Sisi tours abroad, aimed mainly at encouraging investment in Egypt.

He stressed the need to be taken another set of measures to reduce the budget deficit, including the rationalization of government spending, reducing imports and increasing social protection programs for low-income.

The Egyptian government issued a decision on 3 November last year, the liberalization of exchange rate or "float the pound", the dollar rose against the pound from 8.83 pounds per dollar to 18 pounds, and caused the decision in the inflation waves severe, reached about 31% last month.

The Egyptian government abolished subsidies on electricity, fuel and domestic gas gradually, at rates ranging between 42% and 100%. As a new tax imposed on the products known as "value-added tax."

In an attempt by the Central Bank of Egypt, to curb inflation, raise the basic interest rate on the deposit and lending rates by 200 basis points, the total raised interest rates for up to 700 basis points in less than nine months, and a thousand basis points in about a year and a half. The bank justified the recent decision of trying to control the annual inflation, and its access to the level of 13% within the last quarter of 2018.

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1698.jpg
 
 
 
 

Economy News _ Baghdad

 Egyptian Oil Minister Tariq al-Mulla said on Tuesday that the cost of subsidizing petroleum products in the country jumped to about 120 billion pounds ($ 6.75 billion) in fiscal year 2016-2017 due to the liberalization of the exchange rate.

Fuel subsidies in the previous fiscal year 2015-2016 amounted to 51 billion pounds, which means that the cost of subsidies increased by 69 billion pounds by 135.3 percent.

Egypt's fiscal year begins on July 1 and ends on June 30.

"Petroleum subsidies were around 120 billion pounds in 2016-2017," he said in an interview with Reuters.

Egypt has raised the price of petroleum products twice in a period of time not exceeding eight months, the latest in June.

Estimated oil subsidies in the 2017-2018 budget are around 110 billion pounds.

Egypt is seeking to implement reforms such as the launch of a smart card system to monitor consumption at gas stations and the distribution of cooking gas cylinders through ration cards under which families receive goods at subsidized prices. But these measures have not yet been implemented.

(USD = 17.78 Egyptian Pounds)

 

 

 

Views 13   Date Added 08/08/2017

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1784.jpg
Egyptian currency
 

Economy News Baghdad:

Egypt has attracted about $ 40 billion in foreign investments and remittances since its currency floated in February, Bloomberg said.

The agency quoted Deputy Central Bank Governor Rami Abul-Naga as saying that the funds include export revenues, dollar sales by investors to buy Egyptian assets, dollar exchange operations and remittances of Egyptians abroad.

According to Abu Naga, this amount does not include loans received by Egypt from the IMF or European bonds sold by Egypt this year.

Investors have pumped money into stocks and bonds since the start of the economic reform process, which removed most of the currency restrictions, raised interest rates and cut fuel subsidies, the agency said.

Central bank reserves rose to more than $ 36 billion, a record high, according to Bloomberg, where the market attracted more than $ 15 billion in foreign inflows.

Inflation, however, rose to more than 33 percent in July. Bloomberg attributed the weakness to local currency, higher taxes and reduced subsidies. 

But the agency pointed to other areas that have achieved positive rates, such as the reduction of the budget deficit to a 5-year low during the 12 months ended in June, while shares rose by 60% in local currency.

The government expects to exceed $ 10 billion in foreign direct investment this fiscal year.

 

Views 18   Date Added 11/08/2017

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On 1/27/2017 at 1:49 PM, Synopsis said:

Maybe the reason Egypt is in such dire straights with their electronic Egypt Economy (e-commerce, e-banking, e-this, e-that, e-you get the idea) is due to the name itself. The Egypt Economy (pronounced E-Jipped E-Con o'(on) me) may just scare the daylights out of potential e-investors. :o

Just a thought and my :twocents:

Go Moola Nova!

:twothumbs:

 

OK that pretty dang funny right there

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22 minutes ago, SnowGlobe7 said:

 

OK that pretty dang funny right there

 

:twothumbs: SnowGlobe7!

 

The Best Of Your Weekend To You! :tiphat:

 

Go Moola Nova!

:pirateship:

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Economist for CNN: Float of the pound is a major reason behind the serious inflation rate in Egypt

Interviewed by Walid al-Husseini

CAIRO, Egypt (AP) - Egypt's inflation rate is more than 40 percent, not 35 percent, as it was announced a few days ago, Is a threat to the Egyptian economy because it is considered an expelling of investment, stressing the importance of finding solutions to control inflation, in remarks to CNN in Arabic.

 

Abdu said that the crisis in the Egyptian economy is not using competencies, considering that the attempt to address the rate of inflation in Egypt is not true because the solution is not known the real crisis, and that what Egypt suffers is not inflation, but is a recessionary inflation.

This was the text of the dialogue:

 

How do you see the rise in inflation in Egypt to 35%?

First, the rate of inflation is more than the figure declared by the state apparatus, which is about 35 percent, after it was 33 percent before the price of energy materials, and it is unreasonable that inflation rises only about 2 percent after the increase in the prices of energy materials. The Minister of Finance himself announced that inflation would rise by about 4 per cent, and that the inflation rate was 40 per cent or close to that level. The question here is who measures inflation in Egypt? Either the central bank or CAPMAS, both government agencies, can not say the right thing.

Is inflation a threat to the Egyptian economy?

Inflation is very troublesome, especially if the state is looking for investments, so how to seek to attract investment and inflation within 40 per cent? Inflation is one of the biggest disincentives for investment. The increase in inflation in Egypt has increased from less than 10 per cent to nearly 40 per cent in just three years, which means that per capita income has fallen by 40 per cent, and any investor considering investing his money contracts with The office analyzes the inflation rate in the country, the budget deficit, the unemployment rate and development before thinking about the percentage of its gain, and then thinking about bureaucracy and corruption and whether it is able to transfer money abroad, especially if the company's headquarters abroad, in addition to the need to provide foreign currency to transfer profits if he wishes in that.

Who is responsible for raising inflation?

The decision to float during the period of negotiations with the International Monetary Fund for a loan of $ 12 billion, a major reason for the high inflation rate of a very large and unpredictable to the Fund's officials, the IMF requested the need to reduce inflation, and advised the Egyptian state to raise interest rates in banks, The interest rate has increased three times since the decision to float the Egyptian pound, and reached about 20 percent, although I think that raising the interest rate in Egyptian banks in one way or another, and the banks had to buy treasury bills so that the interest rate can not be paid. Banks to pay the budget deficit T albeit at a high cost. At the same time, raising interest rates in the banks led to the expulsion of the investor who will consider the project, which will give him more than 25 per cent to cover the costs of his loan.

Do you think that the decision to float the Egyptian Fairy was wrong?

Floating decision was a major reason behind the large inflation currently in place, and it was necessary to float the Fairy gradually, but the Governor of the Central Bank decided to float on one degree, which caused a major earthquake in the market and its dependencies continue. The decision to increase the cost of life, for example increase electricity prices, because the Minister of Electricity said that his ministry imports energy power materials more than 29 billion dollars, and after the decision to float the number rose to 60 billion dollars, and thus raise electricity prices on the citizen and resulted in And the government did not stand with the needy citizen, but raised unrealistic slogans, and launched non-political statements as evidenced by the statements of the Minister of Supply, who talked about reducing the number of loaves of bread to the citizen, and that will not be issued a card catering for those whose income exceeds 1200 pounds Equivalent to $ 65), all indicating a line A in the system.

Do you think the IMF was referring to the high inflation rate?

I have always questioned the experts of the International Monetary Fund, they are not very efficient and they are not practical solutions, evidence that one of the fund's experts once asked me why the dollar is rising in Egypt, even though it is declining all over the world. It is not known that the dollar in Egypt is rare and needed to reverse What happens in the world, although it is a well-known and very simple economic analogy, the theory of supply and demand. This confirms my point of view in the Fund's experts.

What is happening in Egypt is not inflation, but it can be called "inflationary stagnation", meaning that supply is available and purchasing power is not present because of the decline in per capita income. At the same time, there is stagnation due to the lack of people's desire to buy. , But that did not happen.

Does the current evidence indicate low or rising inflation?

Current evidence does not indicate a decline in inflation.

Is it now necessary to reduce inflation?

It is not optional and even desirable, as the rate of inflation must be reduced. If this does not happen, there will be a calamity in the Egyptian economy, because it is the biggest deterrent to investment, and it causes great suffering for people. The world is talking about the quality of life, but in Egypt people are looking for life. the new. The real problem in Egypt is not economic, it is not the use of competencies.

How do you see the solution of this crisis?

If we think about the solution to what is happening in Egypt is inflation, it means not to know the problem in the main, which is currently, as officials decided to raise the interest rate from 8 per cent to 20 per cent, and must address the main causes of the crisis itself, The virtual presentation of the need to reduce the price of the dollar. If that happens, it will lead to lower prices and traders will be forced to do so, and we believe that the armed forces are offering goods at reduced prices, even though the Ministry of Supply is the one who should and will not play this role.

The second part of the solution was initiated by the Egyptian government but did not complete it when it met with the Federation of Industries and the Federation of Chambers of Commerce to agree on a reasonable profit margin for traders to satisfy them. Unfortunately, this did not happen. The two federations were stronger than the government and argued that Egypt follows the free economy.

Are there no regulatory bodies in Egypt that charge traders?

The flotation decision last November raised prices by 130 per cent, because 70 per cent of the basics of life in Egypt are imported, except that traders in Egypt are interested in the gain and the Egyptian economy is helping them. The price of Egypt has increased by 350 per cent, the State has not done its real monitoring role and has left the market to monopolize the oligarchs. This is the fate of most developing countries where there are no real regulatory bodies. The consumer protection system in America holds big companies accountable if they violate the market. The consumer protection system In Egypt it is imaginary and "eat a living", and officials are looking for positions.

Are there opportunities for the dollar to fall?

Certainly there are opportunities, dollar is like any commodity offer and demand, and raise the price was due to scarcity and the importer looking for him and the price of the price. But in the past period the dollar has been available even if it is the result of debt. Indeed, its recent price has fallen within the banks, the demand for imports, which has become very expensive, and the decline in the demand for imported goods have declined.

What is the expected rate of decline in the dollar in the coming period?

Some of the so-called "experts" have confirmed that the dollar will fall below 16 pounds by the end of this year, which is not true, and the dollar will not fall below 17.5 pounds.

Do you think there is a political crisis in Egypt?

Undoubtedly, there is a political crisis in Egypt, and the citizen bears part of this crisis because he is the one who chose the members of the House of Representatives, he was not chosen for the best, and therefore pay the whole society price, the current parliament has 97 businessmen, do we expect to start these for the benefit of the citizen or for their benefit ? There are double standards and conflicting interests.

Do you think there is a serious return to increase the foreign exchange reserves in the Central Bank?

Which is supposed to have a positive return to cover any debts to the state and the elimination of the black market of the dollar and control of its price and the provision of all commodities to the Egyptian people. All this in theory, but in practice, will not affect much because the central bank is afraid to cut its existing $ 36 billion, because it knows that this amount is not the product of real work, mostly as a result of loans, and the largest proportion of the amount of reserves of foreign bonds or deposits Exist for, and Egypt is required to pay $ 14 billion in 2018. 

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

the source:
  • Cairo - Agencies
Date:20 August 2017
image.JPG
 

Moody's confirmed yesterday its rating for Egypt at B3, while maintaining a stable outlook, indicating that the confirmation of the rating stems from the agency's vision that B3 is in line with the country's credit risk situation.

The agency said in its report that the stable outlook of Egypt reflects the vision that the risks of upward and downward to the classification is balanced, according to Reuters.

Egypt's foreign exchange reserves rose to 36.036 billion dollars at the end of July from 31.305 billion last June. The latest figures indicate that the reserve increased by about 4.73 billion dollars in July.

In July, Egypt received a second payment of $ 1.25 billion from a $ 12 billion loan from the IMF.

The Egyptian government has been implementing a program of economic reform since the end of 2015, including a value-added tax, liberalizing the pound exchange rate and cutting subsidies on electricity and petroleum products in order to revive the economy and restore it to growth and reduce imports of goods.

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