The Central Bank of Egypt “monitors importers” demand for the dollar until June 2023
The Central Bank of Egypt” monitors importers’ demand for the dollar until June 2023. With the aim of determining the expected volume of demand for hard currency until the end of the current fiscal year. Last May, Egyptian President Abdel Fattah El-Sisi directed, excluding production requirements and raw materials from the procedures that were recently applied to the import process, to return to the old system through “collection documents.” (Asharq Business)
- The Central Bank requested limiting the actual production capacities of factories to the total maximum capacities,
in order to monitor the real needs of hard currency to import production requirements. The Central Bank of Egypt stopped dealing with collection documents in the implementation of all import operations, and worked with “documentary credits” only. In documentary credits, the transaction is between the importer’s bank and the exporter’s bank, and the banks are a key player in the process, while in the collection documents, the transaction is between the importer and the exporter directly and based on an old trust between them in dealing, and the role of the bank is only an intermediary. (Asharq Business)
- Many manufacturers, companies and businessmen were affected by the decision to work with documentary credits,
and several businessmen and investor associations sent letters to the Council of Ministers and the Central Bank in order to reverse this decision, and many importers complain about the accumulation of their goods in Egyptian ports without releasing them due to the delay in opening documentary credits. (Asharq Business)
- Finance Minister: Facilitating customs procedures between Egypt and Jordan to stimulate intra-trade movement.
The Minister of Finance, Mohamed Maait, reviewed the results of the meetings of Shahat Ghatouri, Head of the Customs Authority, with his Jordanian counterpart, directed to maximizing cooperation efforts between the two brotherly countries, and joint work to overcome any obstacles, in a way that contributes to reducing the time of customs release and revitalizing the intra-trade movement. (Hapi Journal)
- Moreover, the electronic link between the "Nuweiba" customs in Egypt and the "Aqaba" customs in Jordan,
which helps in facilitating the trade exchange of goods and merchandise between the two countries, has been agreed with the Jordanian side to organize mutual field visits between representatives of the customs of Nuweiba and Aqaba customs; In order to work on overcoming obstacles, facilitating customs procedures, and stimulating trade exchange. (Hapi Journal)
- Egypt-Jordan trade exchange grows 18.1% YoY in Q1.
Trade Exchange between Egypt and Jordan grew by 18.1% year-on-year (YoY) in the first quarter (Q1) of 2022, recording 261.4 million USD from 221.3 million USD in Q1 2021. Egyptian exports to Jordan reached 198.9 million USD in Q1 2022, increasing by 10.5% YoY from 180 million USD. Meanwhile, Egypt’s imports from Jordan surged by 51.2% to 62.5 million USD in the first three months of 2022, compared to 41.3 million USD in the same quarter last year. (Asharq Business)
- USAID funds Egypt’s response to Covid-19 with 9 million USD.
The US government is supporting Egypt’s Covid-19 response with 9 million USD (173.4 million EGP) in new funding. The new funding program was launched by USAID Egypt in partnership with the Egyptian Ministry of Health and Population and the World Health Organization (WHO) in Egypt. The program aims to address the urgent needs of the Egyptian government’s response to the pandemic. (Arab Finance)
- Saudi oil exports jump to the highest level in its history to 117.7 billion SAR.
The value of Saudi oil exports jumped during last June on an annual basis, by 94.1%, to reach about 117.7 billion SAR, compared to 60.6 billion SAR in the same month of 2021. The value of merchandise exports increased by 3.4 billion SAR, by 2.3%, compared to May 2022. Non-oil exports, including re-exports, increased by 26.8% to 30.1 billion SAR in June 2022, compared to 23.7 billion riyals in 2021, while the value of non-oil exports increased by 1.9 billion SAR, by 6.8%, compared to May 2022. (Hapi Journal)
- Egypt’s GASC secures 240,000 tons of Russian wheat.
The General Authority for Supply Commodities (GASC) has signed a contract for booking 240,000 tons of Russian wheat. The shipment was booked for delivery over three stages as follows: from September 20th to October 10th, from October 11th to 30th, and from October 21st to November 10th. This move will bolster Egypt’s reserve of imported wheat. On August 22nd, Minister of Supply and Internal Trade Ali Moselhi stated that Egypt’s strategic reserve of wheat is sufficient for seven months. (Al Mal)
- Moving to our EGX and companies, Emirati "Chimera Investment" seeks to acquire a stake in the "Egyptian startup "MNT" (Halan).
Chimera's bid to acquire a stake in the Egyptian fintech startup comes a few weeks after it acquired a 56% stake in the Egyptian billionaire. Naguib Sawiris in "Beltone Financial Holding", compared to about 385 million EGP, at a price of 1.485 EGP per share. We believe the completion of the acquisition agreement will be soon, but the value of the deal may change slightly after the price of the pound moves. The price of the Egyptian pound fell to 19.19 against the dollar, falling by more than 22% since last March, its lowest level in 5 years. Meanwhile, the cash reserve at the Central Bank of Egypt shrank to 33.14 billion USD, which is also the lowest level since 2017. (Asharq Business)
- Beltone turns to consolidated loss in H1; Standalone loss deepens.
Beltone Financial Holding’s (BTFH) consolidated financials showed a shift towards loss during the first half (H1) of 2022. The company reported a consolidated loss after tax of 105.589 million EGP in H1 2022, compared to a net profit of 8.546 million EGP the year before. Total consolidated operating revenue surged to 182.008 million EGP in the six-month period ended June 30th from 159.893 million EGP in the same period a year earlier. As for standalone financials, Beltone registered a net loss after tax of EGP 37.419 million in the January-June period, down from 39.52 million EGP in the comparative period the year before. (Mubasher)
- South Valley Cement suffers EGP 117m losses in H1-22.
The net losses of South Valley Cement Company widened by 54.50% during the first half (H1) of 2022 to 117.08 million EGP, compared to 75.75 million EGP in the same period a year earlier. Loss per share came in at 0.24 EGP during the first six months (6M) of 2022, compared with 0.16 EGP in the year-ago period. Sales stood at 325.86 million EGP in H1-22, a surge from 106.43 million EGP in H1-21. In the meantime, the company’s sales grew to 119.71 million EGP during Q2-22 from 44.30 million EGP in Q2-21. (EGX)
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