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Cairo: The Egyptian pound is the second best currency in the world


yota691
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In Iraq, the dinar exchange rate against the US dollar is a "red line" and a "sacred" part of the country's ambiguous monetary policy...............See from making "stabilize" the dinar exchange rate, and maintain the value of the dinar "strong" and "dear," the dollar "weak" and "cheap "And" the selling window of the currency ", and" facilities "imports" uncontrolled "..

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  • yota691 changed the title to Why not do it now?
  • 3 weeks later...

44 minutes ago

Egypt proves the price of the customs dollar

2017-09-30T12: 05: 16Z

Egyptian Pound against the Dollar

Egyptian Pound against the Dollar
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ABU DHABI -Egyptian Finance Minister Amr al-Jarhi said on Saturday that it was decided to fix the dollar at LE 16 for one month from October 1.

The customs dollar is used to calculate the value of the fees paid by the importer in local currency for the customs release of imported goods.

Al-Jarhi said in a telephone conversation with Reuters that the decision to fix the dollar rate of customs came "consistent with the stability of the currency during the past period."

The dollar is trading in Egyptian banks at about 17.71 pounds on average against 17.75 pounds a month ago.

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Cairo, 11 October 2017, SPA - 
The Egyptian Ministry of Finance plans to issue treasury bills and bonds with a total value of 145 750 billion pounds in October. 
Treasury bonds will be issued for maturities of 91, 182, 273 and 364 days with a value of 32.75, 32.75, 34 and 34 billion pounds respectively, while the 3-year bonds (October 2020 maturity) of LE 4.5 billion will be offered during the same month, 2022) worth 2.5 billion pounds. 
The Egyptian Finance said that 7-year bonds (maturity of 2024) will be offered at a value of LE 3.25 billion and a maturity of 10 years (maturity of November 2025) of LE 2 billion. 
// // ended 
14:58 ITM 

 
 
 
 
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Last Updated: Saturday, 24 October 1439 H - October 14, 2017
 
Saturday, October 24, 2017
41bfff27-40ac-4931-91c6-3c504d0518be_16x
  • Cairo - Khaled Hosny

The decisions issued by the Central Bank of Egypt concerning the activity of deposits placed heavy burdens on the banks. In fact, the decisions taken by the public sector banks to issue savings certificates with special returns were also subject to verbal instructions from the Central Bank. The rates of return on deposits increased since March 2016 by about 4.5 A huge burden on all public and private banks alike.

The study, prepared by the banking expert, Ahmed Adam, under the title of the impact of the increase in the proportion of mandatory reserves on the economy and banks, "the Central Bank of Egypt decided suddenly in early October to increase the mandatory reserve from 10% to 14%, which indicates the presence of many The repercussions on the macro-economy and on the Egyptian banking sector.

The mandatory or legal reserves, as some call them, represent a percentage of the customers' deposits in local currency and foreign currencies. The banks deposit them with the Central Bank without counting any proceeds on which the banks benefit from depositing them with the Central Bank.

Compulsory reserve ratios are equal for foreign currencies and local currency after being reduced to local currency from 15% before 25 January to 14% and then reduced after 25 January from 14% to 12% in March 2012 and then to 10% in June 2012 and reductions after 25 January In the same year and in less than four months to equal the local currency reserves with foreign currencies by 10%. Indeed, legal reserves are an important instrument of monetary policy.

The Reserve Bank is able to control the volume of cash available at the time of deflation by reducing the reserve ratio and reducing it by increasing the rate of inflation by increasing the reserve ratio, in addition to controlling the rate of return after its liberation. Each bank determines the rate of return on its deposits and loans. Ensuring banks' safety when exposed to a sudden withdrawal of customer deposits may put them at risk of bankruptcy.

The mandatory reserves were not used by the central bank to properly target inflation. The reason for their reduction from 14% to 10% was due to the very low liquidity of the banks, which led to a slowdown in their coverage of the budget deficit. Reduction of mandatory reserves despite the high rates of inflation and significantly, which gave a red light for investors abroad about the existence of problems with local liquidity in Egypt away from thinking about investment in the Egyptian market, and therefore these investments declined clearly.

The reduction in mandatory reserves is associated with net profit in a reverse relationship. The decrease in mandatory reserves is a positive result on the net profit of the bank. In fact, the reduction of the mandatory reserves of any bank from the rate determined by the central bank is possible under decisions of the Central Bank on these reserves.

She confirmed that the 6-month savings certificates were not deducted from the mandatory reserves, and therefore, the higher the percentage of savings certificates in customer deposits, the lower the mandatory reserves and the positive effect on net profits.

Funds for SME lending are exempted from the mandatory deposit reserve ratio or are fully deducted from the reserve balance when they enter the CBE initiative and lend it a return of 5%. Thus, the increase in SME lending balances reduces the mandatory reserve ratio to positive On the net profit.

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  • yota691 changed the title to Central Bank: 80 billion foreign inflows since flotation
Last Updated: Wednesday, October 28,
 
Wednesday, October 28, 2017
 
 
 
 

Arabic.Net

Tariq Amer, the governor of the Central Bank of Egypt , said that the monetary reforms have led to an increase in foreign inflows that exceeded 80 billion dollars since the liberalization of the exchange rate last November.

In an interview with Al Arabiya on the sidelines of the IMF and World Bank meetings in Washington, Amer said that previous monetary policies had prevented matters from being resolved, so "we have developed a comprehensive program to tackle the problems seriously."

He stressed that the liberalization of the exchange rate is part of an integrated program to control public finances, stressing that the decision to float the Egyptian pound back to the central and not to the International Monetary Fund.

On the other hand, he noted that the agreement with the IMF confirms "our seriousness in the implementation of reforms," pointing out that the next phase is to double the exports by 100% and structural reforms.

The Egyptian government has recently announced that it will receive a slice of the International Monetary Fund next month worth two billion dollars.

This comes in the framework of a loan received by Egypt from the Fund of $ 12 billion, distributed over three years, through a reform program supervised by the IMF and the World Bank.

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Latest Update: Tuesday, 4 Safar 1439 H - October 24, 2017
 
Tuesday 4 Safar 1439 H - October 24, 2017
41bfff27-40ac-4931-91c6-3c504d0518be_16x
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Arabic.Net

A delegation from the International Monetary Fund (IMF) will begin its official visit to Cairo on Tuesday as part of a round of negotiations to review the annual progress made by the Egyptian economic reform program to prepare for the disbursement of the third tranche of the IMF loan to Egypt. .

Asharq Al-Awsat quoted Egyptian sources as saying that the delegation's visit will continue till November 3, and will include meetings between the delegation members and a number of Egyptian officials on the implementation of the economic reform components, so that the delegation can present its recommendations to the Fund's management.

Egyptian officials and others in the IMF noted earlier that Cairo had achieved a large part of the reforms. Egyptian Finance Minister Amr Al-Jarhi said Egypt had "succeeded in making more than 80% of the difficult decisions of the economic reform program."

Most observers expect that Egypt is on track to get the third tranche of the $ 2 billion loan before the end of this year, especially as the International Monetary Fund director Christine Lagarde praised the achievements of the reform file during meetings with Egyptian officials on the sidelines of the autumn meetings A joint IMF / World Bank meeting earlier this month.

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  • yota691 changed the title to The delegation of the IMF in Cairo to discuss a new segment of the loan

Egypt to issue treasury bills at LE 13.2 billion

Posted by Tomorrow

 

Date: 11:03 AM, October 28

On Sunday, the Central Bank of Egypt (CBE) will issue treasury bills worth 13.2 billion pounds on behalf of the Ministry of Finance. The first issue of 182-day Treasury bills will be 6.5 billion pounds and 6.7 billion pounds for 364 days.

The budget deficit is expected to reach LE 370 billion by the end of the current fiscal year, financed by the Central Bank's issuing of treasury bills and bonds, government debt instruments on behalf of the Ministry of Finance, and through grants and grants from Arab countries and international loans. .

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  • yota691 changed the title to International Monetary Fund: Egypt's economy is recovering significantly
14:00
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The Egyptian economic reforms seem to be succeeding as growth and revenues accelerate in some areas, an IMF official said on Tuesday.

Jihad Azour, director of the Middle East Department at the IMF, said that a positive delegation can be seen gradually. A delegation from the IMF is visiting Cairo to review the Egyptian reforms before submitting a new tranche under a $ 12 billion loan agreement for three years. In November last year.

Azour said he did not want to prejudge the results of the mission's review, but added: "Indicators of economic recovery are notable both in terms of increased growth in certain sectors or in revenue growth in areas such as tourism and foreign direct investment."

He noted that the current priority is to maintain the pace of reform and accelerate structural change in the economy.

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  • yota691 changed the title to Egypt .. $ 55 billion entered banks since the float of the pound
Last Updated on Wednesday 12 Safar 1439 H - 1 Nov
 
Wednesday 12 Safar 1439 H - 1 November 2017 AD
 
 
 
Arabic.Net

Gamal Najem, deputy governor of the Central Bank of Egypt, said that the liberalization of the pound exchange rate has had several effects on the banking sector, most notably the entry of $ 55 billion to banks since the decision to float the currency.

In an interview with Al-Arabiya, Najem pointed out that the banking sector had reached $ 20 billion in the previous year to liberalize the exchange rate of the pound against the dollar, pointing out that the difference reflects confidence in financial reforms, notably liberalization of the exchange rate.

The central bank said reforms had pushed inflation up to 34 percent, but it was a price to be paid, with official expectations that inflation would fall to normal levels by the middle of next year.

The central bank stressed that the monetary situation in Egypt has become stronger than 2010, and that there will be no further shocks in monetary policy, pointing to the stabilization and elimination of the market exchange rate random over the past 10 months.

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After a year of floating .. The Egyptian pound has not floated so far

04/11/2017 11:10 | Number of readings: 21

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After a year of floating .. The Egyptian pound has not floated so far

Trend Press / Agencies

 

Economists believe that Egypt needs strong flows of foreign direct investment (FDI), increased exports and a return of tourism to strengthen its currency, but a gradual appreciation of the pound is necessary.

After a year of floating, the pound is still half its value, despite a jump in foreign reserves and positive expectations from the International Monetary Fund, which has agreed to lend Egypt $ 12 billion after the flotation decision in a short time.

The central bank canceled the currency peg at 8.8 pounds on November 3 last year, hoping the foreign currency would return to the formal banking system after a scarcity of a bloated black market.

The pound is currently trading at about 17.6 against the dollar, after it was at about 20 pounds after the float directly.

"There has been a huge demand for dollars for some time, and only recently, I can say three to five months ago, I started to see a balance between supply and demand," said Radwa Suweifi, head of research at Pharos Securities Holdings.

Egypt's foreign reserves rose to more than $ 36 billion in July, their highest level since the events of 2011, which drove foreign investors and tourists away.

The high demand for domestic debt instruments due to higher interest rates, as well as grants and loans, was a big part of the jump in reserves.

The decline in the value of the pound after its flotation contributed to the strengthening of Egyptian exports, which led to a decrease in the balance of trade of a country dependent on imports by 37% amid stricter restrictions on imports, but weak industrialization means that non-agricultural exports remain low.

Economists said a sudden and short-term rise in the value of the pound could push foreign investment out of domestic debt instruments. Experts also expect the Egyptian currency to appreciate next year as tourism returns, which are showing signs of recovery.

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GMT 8:45 2017 Monday , November 6 : Last Updated

Caused a wave of inflation and an insane rise in prices

After a year of floating the pound ... Is the Egyptian economy better?

Sabri Abdel Hafeez

  • eqtisadegypt.jpg
    The decision to float the pound has its downsides and positives

«Elaf» from Cairo: year passed since Central Bank Egypt decision"float pound," which was a turning point in performance Egyptian economy, which seen huge challenges since revolution January 25 2011, in third of November last year,Central Bank Egypt announced The liberalization of the pound exchange rate, the complete elimination of the parallel market of foreign exchange, and the easing of the budget deficit.

The government's decision to float the pound was a crucial step in securing the IMF's $ 12 billion loan. After the flotation, the main features of 2017 were the increase in hard currency in banks, improved tourism, rising inflation and foreign debt. The decision also caused alarmingly high prices, And the increase in poverty and unemployment among young people as a result of the large number of private economic institutions being laid off by a large number of workers.

According to data and statistics of the Central Bank of Egypt, the decision to float the pound achieved a strong return to the improvement of the economy during 2017, the foreign exchange reserves increased by about 17.5 billion dollars during the first 11 months of floating the pound, reaching the end of September to 36.5 billion dollars, Compared with $ 19 billion at the end of October 2016.

Egyptian remittances abroad have jumped by about 50% since the floating of the pound. During the period from January to August 2017, foreign remittances amounted to about $ 12.9 billion, compared with about $ 10.5 billion during the same period of 2016. The net foreign direct investments In the last fiscal year by about 14% to 7.9 billion dollars compared to 6.9 billion dollars in the previous year thanks to the floating of the pound, and according to the data of the Ministry of Industry has led to the floating of the pound to increase the proceeds of Egyptian exports to the world after the Egyptian goods became cheap compared to the likes In the world, the Egyptian non-petroleum exports also achieved a leap During the previous nine months (January-September), recording 16 billion and 490 million dollars, compared with 14 billion and 890 million dollars during the same period of last year 2016, an increase of 11%.

On the other hand, there are many disadvantages to the decision, including that it caused waves of rise in the prices of all goods in a nutshell, especially food, and exacerbated the crisis of severe shortages of some goods, especially medicines.

Inflation in Egypt rose significantly, affected by recent economic reforms, led by the liberalization of the pound exchange rate, before falling to 32.9% in September from 33.2% in August.

The decision to float the pound and implement a package of economic reforms has exacerbated foreign debt rates, especially as the government expanded borrowing from international institutions led by the International Monetary Fund, along with international bonds to bridge the financing gap. The country's foreign debt jumped to $ 79 billion at the end of June Compared to $ 60.2 billion in September 2016, according to the central bank.

According to Dr. Said Abdel Moneim, advisor to the National Planning Institute, the government's decision to float the pound had some negatives and positives, but the Egyptian citizen of the low-income group more than bear the negative repercussions of the flotation of the pound. The result was an increase in the poverty rate as a result of reducing the standard of living of individuals and the percentage of Egyptians living below the poverty line was 27.8%.

He added to the "ILLAF" that the World Bank said in its latest report that the Egyptian government and the International Fund had expected the existence of significant positive results as a result of the floating decision, the most important of which is the appreciation of the Egyptian pound against the US dollar, as well as raising the standard of living of citizens, Is happening, which confirms the failure of the Central Bank of Egypt throughout the year to benefit from the decision to float.

On the success of the floating of the pound in the increase of foreign reserves in the Central Bank of Egypt, the economist said that the foreign reserve numbers are deceptive, there are about 30 billion dollars of deposits and loans will pay interest during the next two years, so the decision to float the pound has nothing to do with the rise in reserves Foreigner as the Government claims.

On the other hand, Dr. Mohamed Gamal, a professor of economics at Cairo University, said that the decision to float the pound led to a reduction of imports, equivalent to 10 billion dollars, an increase of 11% in exports and an increase of tourism imports of 6 billion dollars.

He added that the decision also led to an increase in remittances from Egyptians abroad by 50%. Foreign transfers during the period from January to August 2017 amounted to about $ 12.9 billion, compared with about $ 10.5 billion during the same period of 2016.

He pointed out that the liberalization of the exchange rate led to the solution of the problem of bank credits, in addition to facilitating the international commitments to Egypt, and payment of debt installments regularly, and also contributed to the elimination of the black market of the dollar and lack of banks, where the exchange rate stabilized between 17 and 18 pounds, This stability is a success of the flotation decision.

The Central Bank of Egypt decided to release the pound on November 3, 2016, which is known as the "float of the pound." The decision resulted in a rise in the prices of all commodities. The dollar jumped from 8.73 pounds to 18 pounds within a few days of issuing And the price has stabilized since the beginning of the year at the limit of 17.60 pounds.

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  • yota691 changed the title to IMF: Egypt has achieved financial stability since the flotation
Last Updated on Friday, November 24, 1439 H - November 24, 2017
 
Friday, November 24, 1439 - November 24, 2017
0b76138c-37b9-4c4c-a85e-13b69618cda7_16x
Cairo - Arabic.Net

The International Monetary Fund praised the measures taken by the Egyptian government in implementing the reform program, which concluded that Egypt has achieved strong financial stability during the last period, especially since the decision to float the pound against the dollar in November last year.

Director of the Middle East and Asia at the International Monetary Fund, Jihad Azour, said that Egypt is one of the countries that achieved remarkable financial stability and strengthened its investment climate through the many measures taken during the past year.

He added that the economies of the Middle East in general, is seeking to adapt to the decline in low oil prices, expected to increase the growth rates of oil-importing countries to 4.3% this year.

But warned at the same time of the possibility of risks that hinder the progress of the Egyptian economic reform program, such as deteriorating security conditions in Egypt, or high oil prices.

Earlier, Egyptian Finance Minister Amr al-Jarhi said his country would receive a new loan from the International Monetary Fund (IMF) in December for a total of $ 12 billion in a three-year loan.

The total amount received by Egypt from the fund after receiving this payment will reach about $ 6 billion.

The Egyptian government is implementing an economic reform program, in cooperation with the World Bank and the International Monetary Fund, which includes structuring the tax system and imposing more taxes, eliminating the subsidies in kind, both for energy and ration goods, and replacing it with monetary support as part of increasing the country's resources and reducing the worsening budget deficit.

The Minister of Planning, Follow-up and Administrative Reform, Dr. Hala Al-Saeed, said that the growth rate of the Egyptian economy registered about 5% during the last quarter of fiscal year 2016 - 2017.

Last October, the International Monetary Fund (IMF) predicted Egypt's growth rate would rise to 4.5% in 2017-2018, supported by the Egyptian government's economic reform program overseen by international institutions led by the World Bank and the International Monetary Fund.

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  • 2 weeks later...

First Published: 2017-12-08

 

Egypt supports economic reforms by completing a loan from the World Bank

 

Cairo signed a $ 1.15 billion deal in a series of three annual loans worth more than $ 3 billion.

 

Middle East Online

 
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Economic recovery

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CAIRO - Egypt has signed a $ 1.15 billion World Bank development loan agreement Friday, the official MENA news agency reported.

The loan to support Egypt's economic reforms is the latest in a series of three annual World Bank loans totaling $ 3.15 billion for the period from 2015 to 2017. The World Bank approved the loan on Tuesday.

The $ 1.15 billion loan, which supports Egypt's economic reforms aimed at job creation, energy security, fiscal consolidation and business competitiveness, includes $ 500 million in funding from the World Bank Group, such as the African Development Bank and $ 150 million from Britain.

Dollar liquidity has improved in banks over the past year after Egypt agreed to an IMF borrowing program linked to economic reforms and liberalization of the exchange rate, which led to a fall in the local currency rate to almost half and contributed to the elimination of the black market.

The withdrawal and deposit restrictions for non-core commodity import companies are one of the last restrictions that have been applied to foreign exchange since the beginning of the currency crisis in Egypt and have been removed from among the reforms agreed under the IMF loan program.

Egypt's economy grew by 5.2 percent in the first quarter of the current fiscal year 2017/2018, according to official statements.

Egyptian Planning Minister Hala Al-Saeed said earlier that her country's economy grew by 5.2 percent, compared with 3.4 percent in the same period in 2016.

The fiscal year begins in early July until the end of June next year, according to the General Budget Law.

Al-Saeed said that a number of economic sectors recorded 70 percent growth, such as oil, real estate, construction, gas and agriculture.

Egypt raised its economic growth rate to 5.25 percent during the current fiscal year, against 4.6 percent during the preparation of the draft budget

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Governor of the Central Bank of Egypt: We are considering the adoption of a unified African currency

SECTION: ECONOMICDECEMBER 9, 2017 6:36 PM
Governor of the Central Bank of Egypt: We are considering the adoption of a unified African currency
Governor of the Central Bank of Egypt: We are considering the adoption of a unified African currency
 

BAGHDAD / Central Bank of Egypt Governor Tareq Amer said on Saturday that there is currently a study to create a unified currency and unified policies through long-term measures, pointing to the communication with a variety of countries, at the level of Africa, through the desire and ability to provide information And know the demands of African markets.

In a press statement on the sidelines of the 2017 Africa Conference, Amer said that a new administration has been set up in the Central Bank of Egypt to open new horizons for cooperation with Africa, in addition to restructuring the Egyptian Export Development Bank.

The Governor of the Central Bank of Egypt explained that the private sector in Egypt has an opportunity to travel to the African continent and invest in it and the banking system will support him and provide him with the appropriate environment and adequate financing.

"The road has become open to the private sector, and the boldness and mobility of Egyptian institutions need to know the opportunities presented, especially as the currency is now competitive," he said, adding that Egypt has become open to all and investment has a role in supporting Egyptian exports.

He pointed out that there are serious measures to support Egyptian exports in addition to strengthening the Egyptian currency to counter inflation. He pointed out that the central bank is obliged to direct 20% of banks' portfolio to support small and medium enterprises. Ending 21 / j

 

http://www.albaghdadiyanews.com/?p=84242

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  • 2 weeks later...
12:39
Last updated
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Follow - up / Tomorrow 's Press: to 
grant the International Monetary Fund, Egypt a loan of $ 2 billion, after confirming the results achieved by the economic reform program. 
"The International Monetary Fund has agreed to spend the tranche of $ 2 billion to Egypt after completing the second review of the performance of the Egyptian economy, which shows an acceptable stability," said the First Deputy Director General of the Fund, David Lipton, in a statement read by "Al-Ghad Press". The Egyptian economy has recorded a growth in GDP. "Inflation rates are on the verge of moderation. Financial conditions are still on track and foreign exchange reserves are at their highest levels since 2011." 
"In the medium term, the authorities need to implement reforms in tax policy and modernize the tax and customs administration, to create the necessary investment space for human capital and infrastructure," Lipton said. 
The International Monetary Fund (IMF) mission visited Egypt from October 25 to November 9 for a second review of the three-year IMF-supported economic reform program with a total loan of $ 12 billion. 
On November 11, 2016, the Executive Board of the International Monetary Fund approved a $ 12 billion loan over three years to support the Egyptian government's economic reform program.
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  • yota691 changed the title to International loans and their implications for the economic process

International loans and their implications for the economic process

   
 

 
 


23/12/2017 12:00 am 

Adnan al-Kinani

Countries with critical economic conditions use loans to get rid of their difficult financial position. Lending countries tend to lend when their financial situation is booming, especially if there are guarantees and substantial benefits from the provision of such loans. And whether they are used (borrowing) as a political tool 

Pressing? 
It is a very useful question to determine the economic relationship between countries and their impact on the system of international relations, but the answer to them is difficult, because there is no accurate study in this regard, and because the public archives rarely maintain written effects between money contracts and governments. 
Most of the cases in these archives remain closed for a long time in front of researchers and specialists. If the media wants to identify the financial contracts, we see this approach collides with incorrect or accurate information on financial and economic issues. Or counterfeiting.
The borrowing process is linked to several factors, foremost of which is the political factor of the governments of the countries that have received the financial investments. The government is making the necessary effort to pay the benefits of the borrowing process. If the opposite happens, what are the expected negative effects? Which would limit the movement of capital, thereby preventing foreign companies resident in their country from transferring the benefits they bring to the home country. 
Here, the role of the state or sovereign government is highlighted, and does this climate have repercussions on the financial interests of countries?
The second is to exhaust the country's economy, beginning with the floating of the local currency, as in Egypt and the floating of the pound. , Ie the liberalization of the exchange rate until the official exchange rate reached the maximum value in Egypt, which will double the premiums when the payment is due. 
And experiences of developing countries occurred in such political problems of an economic nature, and subjected to various types of external pressures, and have been several attempts to change their political systems under various pretexts, some benefited from experience and away from this conflict with the sacrifice of simple? 
There are experiences of three countries that have agreed to the terms of the "International Monetary Fund" loan. The experience from an economic collapse to a total collapse (Brazil, Greece and Ghana) has been one of the reasons for the IMF's accusations.
Economists know that access to international loans and in some cases aid is dependent on evaluation reports issued by the World Bank and the International Monetary Fund, highlighting the size and level of pressure currently being exerted on borrowing countries under the demand for swift and immediate action that the public can not welcome. 
What is important is that our economic problems can be solved. We have the ability, the successful plans and the expertise that stems from professionalism, self-reliance and spreading the culture of creativity, instead of the culture of consumption  
.

 
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  • yota691 changed the title to Foreign exchange reserves in the Central Bank of Egypt exceeds 37 billion dollars for the first time in its history
 
 

Cairo 16 Rabi 1439 AH , corresponding to January 3, 2018, SPA 
announced the Central Bank of Egypt exceeded the cash reserves of foreign currency barrier of $ 37 billion for the first time in its history at the end of December 2017 to record 019.37 billion dollars , compared to 732.36 billion at the end of last November , up 296 million Dollars. 
A source at the Central Bank said in a statement today that the cash reserve increased in December despite the payment of $ 2 billion for the African Bank for Export and Import and commitments to government agencies for the benefit of international parties, while the bank received in the last week of December 2 billion dollars, representing the first batch of The second tranche of the IMF loan of $ 12 billion. 
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  • yota691 changed the title to The growth of foreign flows in Egypt paves the way for an economic boom

The growth of foreign flows in Egypt paves the way for an economic boom

   
 

 
 


09/1/2018 12:00 am 

Cairo / Follow-up 

Investors are increasingly optimistic about Egypt's economic prospects after years of political turmoil fueled by economic reforms, a giant gas field, simpler business rules and a currency depreciation.

Foreign holdings of Treasuries hit a record high in December. Foreign exchange market inflows last year were the highest since 2010 and direct investment by foreign firms and investment funds began to pick up again. Among the important aspects of long-term foreign investors are the natural gas fields that have started operating in the past few months, including the Bahr al-Bahr (offshore) field, which has an estimated 30 trillion cubic feet of reserves, making it the largest gas field in the Mediterranean. 
"It will change the rules of the game for Egypt," said Iyad Malas, a partner at Gateway Partners, a fund that invests in Asia, the Middle East and Africa, looking for opportunities in Egypt. 
It is expected that the gas discoveries from Egypt will ultimately make a gas source and support its plans to become a regional center for energy trade.
Besides the gas, direct investment companies say the reforms launched since the end of 2016 and secured for Egypt a $ 12 billion loan program from the International Monetary Fund have contributed to improving morale enough to stimulate investment despite risks. "Our view of Egypt is very positive in the region," said Karim El Solh, co-founder and chief executive officer of Gulf Capital in Abu Dhabi, which has invested about $ 200 million in Egypt. "Egypt is expected to achieve an excellent economic performance in 2018, especially after these very strong and necessary structural reforms "He said. 
Foreigners have invested heavily in high-liquidity instruments such as treasury bills, since Egypt devalued its currency and raised interest rates.

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EGYPT: Cash reserves jump more than $ 1 billion in biggest increase since July

Feb 05, 2018

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 CAIRO (Reuters) - Egypt's foreign exchange reserves rose to $ 38.209 billion at the end of January, its biggest monthly increase since July. 
This is the highest level of the country's hard currency reserves since the start of reserve data recording in the early 1990s. The cash reserve rose to about $ 1.189 billion in January. 
The central bank could not be reached for comment on the reasons for the increase in reserves. 
Egypt's foreign reserves have been steadily increasing since Tariq Amer took office as governor of the central bank in October 2015. It declined only twice in July 2016 and October 2016.
"It is not clear where the funding for the increase is, but it may be through World Bank or African Development Bank payments, along with the regular resources of the central bank," said Reham Dessouki, an Egyptian economist at investment bank Arqaam Capital. 
Egypt agreed in 2015 to a loan from the African Development Bank of $ 1.5 billion over three years and a loan from the World Bank $ 3 billion over three years, as well as the agreement in 2016 on a loan of $ 12 billion over three years also From the International Monetary Fund. 
Egypt received $ 1 billion from the African Development Bank (AfDB) in two tranches within two years, and payments are usually disbursed in December or January each year.
Rami Abu al-Naga, deputy governor of the Egyptian Central Bank for the market sector, told Reuters last month that foreign reserves of $ 37.02 billion at the end of last December covered import requirements for eight months. 
"The increase comes from the recent tranches of World Bank and African Development Bank loans, or through the Central Bank's revaluation of some investments," said Numan Khalid, macroeconomic analyst at CAI Capital Asset Management. 
On the other hand, the Egyptian Finance Minister, Amr Al-Jarhi, said yesterday that his country plans to issue international bonds, worth between 4-5 billion dollars next week. He added, at a press conference in Cairo, that the proposed IPO will be launched in the world markets.
Egypt's approach to the international financial markets comes at a time when foreign debt rose to $ 79 billion in June 2017, according to data from the Central Bank of Egypt, while Fitch Ratings estimates Egypt's external debt at $ 100 billion. 
Egypt launched international bonds worth $ 7 billion in January and May 2017, after the government agreed to raise the ceiling of international bond issuance to $ 7 billion. 
The Egyptian Finance Minister said during the press conference that the program to put shares of government companies in the stock market needs to be well arranged and medium-term program.  
He explained that many companies have joint ownership, which requires work on cooperation between all parties and coordination between ministries according to a specific schedule.  
He added that the Engineering Company for Petroleum and Chemical Industries (ENPI) will be among the companies to be put on the stock exchange.

 

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Last Updated on Friday, 24 Jumada I 1439 H - February 9, 2018
 
Friday 24 Jumada I 1439 H - February 9, 2018
00727bde-af83-403e-8776-5cb272e3c6e6_16x
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CAIRO (Reuters)

Central Bank of Egypt data showed that the average yield on Egyptian treasury bills for six months and one year fell on Thursday to continue a downward trend to pay returns to their lowest levels since the country freed its currency exchange rate in late 2016.

The yield on 182-day Treasury bills fell to 17.358% from 17.611% in the previous auction, and the return on the 357-day credit to 16.435% from 16.679%. 

These returns are the lowest since Egypt freed the pound exchange rate under reforms linked to a three-year, $ 12 billion IMF loan program. 

After floating the currency, Egypt raised key interest rates by 700 basis points to combat price increases. Interest rate increases initially pushed up treasury bills and encouraged foreign investors to buy Egyptian government debt. 

But Treasury bills have fallen gradually in recent weeks. Treasury yields for six months fell from 19.14% and year-end orders fell from 18.186% at an auction on Jan. 3.

Economists said they expected the central bank in Egypt to start lowering interest rates amid slowing inflation. It is expected that the Monetary Policy Committee of the Central Bank will hold its next meeting on 15 February. 

Egypt's annual inflation rate in January fell to its lowest level since the currency floated.

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The European Central Bank expects a bank collapse nearby

25/02/2018 12:59 | Number of readings: 473

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The European Central Bank expects a bank collapse nearby

Trend Press / Agencies

 


The European Central Bank has warned of the risk of collapse of Egypt, the third largest bank of Latvia, after the freezing of payments to him following charges of Washington involved in money laundering .

 

The bank said in a statement that due to the significant decline in liquidity, it is likely that the bank, "ABV," unable to pay its debts and other obligations with maturity of payment .

 

The central bank announced this week that it would freeze payments to the Latvian bank, a new shock to Latvia's financial sector after central bank governor Ilymaris Rimishev was barred from continuing his duties amid accusations of bribery .

 

"The bank did not have adequate funds available immediately, to bear the withdrawal of deposits before the deposit fund began to distribute dividends, " the statement said .

 

Last week, the US Treasury Department considered ABL to be "an institution that is a major source of money laundering concern," accusing it of being linked to North Korea's weapons program .

 

Latvian police announced Friday they had begun investigating allegations related to money laundering .

 

But ABL defended itself, insisting it had raised 1.36 billion euros ($ 1.67 billion) to support its liquidity, saying it was "quite adequate for the bank to complete payments and fulfill all its obligations to its customers, but it did not give the opportunity to do so for political reasons " .

 

For his part, Prime Minister of Latvia Maris Kosineskis that his country "has taken steps to fight money laundering in recent days," but acknowledged that "the procedures were not enough, to end this practice in the financial sector . "

 

"The relevant entities in Latvia work closely with each other and with our international partners, including the European Central Bank and the United States, " the BNS news agency quoted him as saying .

 

"I am convinced of the stability of Latvia's financial sector and the ability to take major steps to ensure that the banking sector maintains its reputation . "

 

 

http://aletejahtv.org/permalink/206655.html

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Is Egypt heading for bankruptcy?

 
February 7, 2017 at 2:33 pm | Published in: Africa, Article, Asia & Americas, Egypt, IMF, International Organisations, Middle East, Opinion, US, Yemen
Image of the National Bank of Egypt in Cario [Daniel Mayer/Wikipedia]
Image of the National Bank of Egypt in Cario [Daniel Mayer/Wikipedia]
 
February 7, 2017 at 2:33 pm
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Egyptians have been busy recently with concerns that their country may be heading for bankruptcy, especially in light of a report by the US Foreign Relations Council about to be submitted to Donald Trump. Some citizens fear that the economic conditions may lead the government to seize their deposits in local banks to save itself.

Companies, individuals or countries go bankrupt when they become unable to pay their debts, premiums and interest. In Egypt’s case, and despite the mountain of foreign debt — which reached more than $60 billion last September — followed by loans from a number of sources, and more than $5 billion in foreign debt premiums and interest in the past two fiscal years, the government regularly pays the interests and premiums it owes.

When some said that Egypt requested a renewal of Saudi bonds worth half a billion dollars, by deferring repayment, the Central Bank denied it, confirming the repayment of the semi-annual instalment of the Paris Club countries worth about $700 million in January.

As interest and premiums increase, the government resorts to borrowing more money, whether locally or abroad, through a variety of means, including direct borrowing, treasury bills and bonds in Egyptian pounds, dollars and Euros. The government will also resort to selling some shares from Banque du Caire (Cairo Bank), which is government-owned, in May, followed by the sale of shares in oil companies, and perhaps governmental hospitals as well.

In light of the financial gap, estimated by the International Monetary Fund to be about $12 billion annually for the next three years, the regime in Cairo is keen on repaying all interest and premiums, in order to maintain the confidence of the lenders. It also wants to continue with the game of borrowing from one source to pay another, which it’s been playing since the coup in 2013. There has been more borrowing to pay previous loans or for spending purposes, rather than directing such loans towards developments that bring revenue to help cover the cost of servicing the loans.

What has happened in recent years has shown that Western and Eastern countries are keen to provide financial support to the coup regime through the Gulf States. Countries such as Saudi Arabia, the UAE and Kuwait could not have provided generous subsidies if the West was not happy for them to do so.

When Gulf aid stopped due to the decline in the price of oil, Western countries started helping Egypt through international financial institutions, in which they have majority shares, such as the World Bank, International Monetary Fund, and even the African Development Bank, in which they own half of the voting quotas. Furthermore, Western countries such as Germany, Britain and France have provided the Egyptian regime with direct loans. The US, meanwhile, has kept up its annual support of $250 million, in addition to its military aid of more than $1 billion a year.

The West knows that there are only two main powers in Egypt: the army and the Islamic movement. Although Western governments are not happy with the army’s suppression of civil freedoms, they believe that this is less harmful to their interests in the region and the interests of Israel than the Islamic movement. Hence, they condone the practices of the current regime in its repression of all political opposition, including liberals.

That’s why we see valuations issued by Western rating agencies which give Egypt a stable B grade, despite a surging budget deficit, huge foreign debts and rising debt to the GDP, as well as a high inflation rate. There were also bonds issued by Egypt last month which were covered three times despite the lack of political and security stability and fears about the overthrow of the Cairo regime as a result of popular unrest because of sharp price rises for basic necessities.

It’s also why we see a report from the US Council on Foreign Relations — issued in the context of American interests in the region, such as facilitating the transit of its troops through the Suez Canal and the opening of airspace to US aircraft — which recommends that Washington should provide additional support to the Egyptian regime. This would include support for the Egyptian armed forces and political and diplomatic support to its leaders. The council also requested the resumption of US food aid to Egypt, which stopped in 1992.

The formation of a group to include the US, EU and Asian and Gulf countries, to mobilise more resources to revive the Egyptian economy in the face of bankruptcy has been suggested as well. This means the possibility of Gulf support resuming for the Egyptian regime, albeit at lower levels, especially with the increase in the price of oil. There are huge balances in the Gulf sovereign funds and the move will exploit the Saudi-led coalition’s need for Egyptian forces in countering the Houthi rebels in Yemen.

Translated from Arabi21, 5 February 2017

https://www.middleeastmonitor.com/20170207-is-egypt-heading-for-bankruptcy/

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Tunisia's foreign reserves fell to their lowest level in 16 years

25/02/2018 12:42 | Number of readings:

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Tunisia's foreign reserves fell to their lowest level in 16 years

Trend Press / Agencies

 


"The country's foreign exchange reserves have fallen to their lowest level in 16 years as phosphate exports have stopped because of continuing protests," recent data from the Central Bank of Tunisia showed .


This is the first test faced by new central bank governor Marwan Abbasi, who has vowed to take "extraordinary measures to deal with frightening economic indicators ."


"The currency reserves continued to fall to 11.596 billion dinars ($ 4.85 billion) enough to cover imports for 82 days, compared with 13.702 billion dinars, enough imports for 116 days in the same period last year, " thecentral bank said.


The production of phosphate, a major source of foreign exchange, has been completely stalled for a month due to protests demanding jobs in the southern mining basin, which has crippled the country's exports entirely .


The interruption of the production, which returned a few days ago in the city of Almazila one of the areas of the mining basin, the disruption of another production unit in other provinces, such as the plant Alfosovipbs in Gabes .

Tunisia's trade deficit hit a record $ 6.25 billion at the end of last year .

Tunisia is suffering from various economic problems, which rose last year, mainly by a 23 percent rise in the trade deficit compared with 2016, and a decline of 9 percent against the dollar and the euro .


The government is betting on "extraordinary measures" pledged by the new central bank governor, who won the confidence of parliament to succeed Shazly al-Ayari last week, to counter the alarming economic indicators .


The volume of liquidity outside the banking sector rose to a record level of 12.5 billion dinars ($ 5.15 billion), including large amounts of foreign currency, official figures showed. 

 

 

http://aletejahtv.org/permalink/206647.html

 

ak

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  • yota691 changed the title to Banks of Egypt and float the pound against the dollar .. gains and losses
Last Updated: Saturday, 16 Jumada II 1439 H - March 3, 2018
 
Saturday, 16 Jumada II 1439 - March 3, 2018
8187f45d-6f0b-483d-bfbe-984d62e3e774_16x

Cairo - Khaled Hosny

A recent banking study recommended that Egyptian banks should study the impact of price increases on the administrative and general expenses of banks, with a view to how to reduce expenses in the light of current developments and the possibility of higher inflation due to reform decisions during the second quarter of this year.

The study, which came under the title of "repercussions of the economic reform program on Egyptian banks," that the lower the exchange rate of the pound whenever the Egyptian stock market active, which means higher market value of shares of most banks operating in Egypt.

Most banks managed to maximize the value of their market shares last year. Suez Canal Banks, Abu Dhabi Islamic Bank, Egypt National Bank of Egypt and Housing & Construction achieved the best gains of banks' shares on the Egyptian stock exchange.

The study, prepared by banking expert Ahmed Adam, revealed that two problems could have negatively affected Egypt's credit rating. However, raising interest rates contributed to the elimination of these problems, which positively affects Egypt's credit rating as revised by the international rating agencies.

The first problem was the low rates of growth of deposits in local currency throughout 2016, and this continued negatively affect the continuation of the Egyptian banks to finance the budget deficit, which affects and consequently negatively affect the credit rating, in addition to the impact on high inflation rates.

However, the latest figures issued by the Central Bank of Egypt indicated that total bank deposits at the end of last October reached LE 3218.5 billion against LE 2761.1 billion, an increase of 16.5%.

The second problem was the transformation of net foreign assets of Egyptian banks into negative for the first time in history, as the IFC noted in previous reports as a result of the expansion of the Central Bank of Egypt in strengthening international reserves by borrowing dollars from banks in terms of dollar bills.

And also the acceptance of deposits. This expansion raised the risk ratio on banks' deposits in foreign currency in light of the weakness of the foreign exchange earnings of banks from the banking market and the continuation of this situation would have negatively affected the credit rating of Egypt.

However, data from the central bank indicated that the expansion of issuance of these permits has stopped, so the balance dropped from $ 20.4 billion in December of 2016 to about $ 18.2 billion in June.

The study pointed out that there are previous expectations of the increase in administrative and general expenses in the Egyptian banks, which will negatively affect the cost of resources as well as the rates of growth of net profits and through the annual financial centers for 2017, the administrative and general expenses of the Commercial International Bank increased by 29.2% and Qatar National Bank by 26.3% , And the National Bank of Egypt by 36.4%.

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  • yota691 changed the title to Cairo: The Egyptian pound is the second best currency in the world

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