The government is currently in early-stage negotiations with Abu Dhabi Ports and the Qatar Ports Management Company (Mwani) to manage and operate ports in Egypt
The government is currently in early-stage negotiations with Abu Dhabi Ports and the Qatar Ports Management Company (Mwani) to manage and operate ports in Egypt, especially in Ain Sokhna and Safaga, Transport Minister Kamel El Wazir stated. This statement confirms earlier reports that the Qatar Investment Authority was looking at port development and management. As a refresher, representatives from Maha Capital, the investment arm of QIA, visited Damietta port last October after signing an MoU with the Transport Ministry in September to explore investment in Egyptian container terminals. The Sovereign Fund of Egypt (SFE) and the QIA inked an agreement to cooperate on ports during President Abdel Fattah El Sisi’s visit to Doha earlier in September. (CNBC Arabia)
- It’s the Central Bank of Egypt’s final policy meeting of the year on Thursday, and we expect policymakers to close out 2022 with another 200-bps rate hike
To support the currency and tackle rising inflation. Seven of the nine analysts and economists are forecasting the central bank to raise rates, five of which see a 200-bps hike. This would take the policy rate to 15.25%, its highest level since early 2019. It’s noted that CBE has already delivered significant tightening by cancelling the 8% subsidised lending scheme, in addition to a 200bps policy rate hike in Oct, but might still need to signal even more tightening, in light of the recent significant rise in inflation expectations, on USD weakness in the parallel market. (Zilla Capital)
- IMF eyes flexible exchange rate in Egypt after letters of credit phase-out
The International Monetary Fund will be watching for a shift by Egypt to a flexible exchange rate after a requirement to finance imports through letters of credit is phased out at the end of this month. The IMF's executive board on Friday approved a 46-month, 3 billion USD financial support package for Egypt, saying it included a "permanent shift to a flexible exchange rate regime". (Reuters)
- Ivanna Vladkova Hollar, the IMF mission chief for Egypt, stated that "We will be looking very closely at how the FX market is functioning
Which would then give us the ability to have a conversation with the authorities and our board as to [whether] what we are seeing is really consistent with a flexible exchange rate regime". She also noted that demand for dollars could be eased due to a weaker pound, pointing out that an immediate disbursement of about 347 million USD under the program should be available to Egypt this week. The IMF expects the exchange rate to be volatile daily once the letters of credit requirement is lifted. (Reuters)
- Two major banks lower monthly purchase, withdrawal limits for card holders abroad
Two major banks in Egypt, namely Commercial International Bank Egypt (CIB) and HSBC Bank, have lowered monthly foreign-currency purchase and withdrawal limits for their debit and credit cards holders abroad. CIB narrowed down monthly withdrawal limits abroad for most debit cards to EGP 2,500 from a range of 5,000 EGP to 30,000 EGP. However, the CBE made no changes to its limits on international card purchases. As for HSBC, the bank lowered its monthly withdrawal limit to 1,500 USD per customer on all of its debit and credit cards from 5,000 USD. The bank also introduced monthly limits on in person and online purchases in foreign currency to a range of 10,000 EGP to 50,000 EGP, based on the card type. (Hapi Journal)
- Egypt’s sources of foreign currency reach 90 billion USD: El-Etreby
Egypt’s sources of supply of foreign currency amount to around 90 billion USD, citing Chairman of the Union of Arab Banks and the Federation of Egyptian Banks Mohamed El-Etreby. El-Etreby stressed on Egypt’s ability to overcome the current crisis. Banks are ready to finance 6,000 companies that showed interest in green economy at the Climate Change Conference (COP27), he noted. (Ahram Gate)
- President Abdel Fattah El Sisi is in Amman for a Middle East summit to resolve regional issues, including the instability in Iraq
The Baghdad II conference brings together regional and international players including representatives from Iran, Turkey, Saudi Arabia, France and the EU. The meeting is the second edition of the regional conference held in August 2021 in the Iraqi capital, initiated by French President Emmanuel Macron. (Al Mal)
- Egypt’s SCA extends granting rebates for dry bulk vessels until June 30th
The Suez Canal Authority (SCA) has amended and renewed circular No. 2 of 2021 concerning dry bulk vessels operating between Mauritanian Ports and ports at the Arabian Gulf, India, and its eastern ports and the Far East to remain in force until June 30th, 2023. Accordingly, laden or ballast dry bulk vessels operating between West Africa, starting from the ports of Mauritania and its Southern ports up to the ports of Guinea, and the Arabian Gulf ports shall be granted a rebate of 15% of the Suez Canal’s normal tolls. (Hapi Journal)
- Egypt, Italy discusses new phase of IEDS Program
Egypt is considering the implantation of the new phase of the Italian-Egyptian Debt for Development Swap (IEDS) Program, Egyptian Ministry of International Cooperation Rania Al-Mashat stated. Both parties are looking to cover seven projects across several sectors, including small- and medium-sized enterprises (SMEs), agriculture, environment, and healthcare, at a total value of 87.2 million USD. There are three phases of the IEDS Program worth around 350 million USD, through which a number of projects are carried out, particularly in food security, silos construction, civil society, and education. (Arab Finance)
- EBRD, FAO launch 5.5 million USD technical assistance package for 6 Arab states
The European Bank for Reconstruction and Development (EBRD) and the Food and Agriculture Organization of the United Nations (FAO) have launched a $5.5 million technical assistance package to support food security in Egypt, Jordan, Lebanon, Morocco, Tunisia, and the West Bank and Gaza. This joint initiative is set to be launched in January in response to the ongoing crisis in grain markets. The package will help the governments of the six countries to consider some of their agrifood policies to improve the long-term resilience of the grain value chain. (Arab Finance)
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