We believe the Central Bank of Egypt (CBE) will most likely keep the interest rates during today’s MPC meeting unchanged

Newsletter

22 Jun 2023

We believe the Central Bank of Egypt (CBE) will most likely keep the interest rates during today’s MPC meeting unchanged. Egyptian President Abdel Fattah Sisi has declared the country’s exchange rate a matter of “national security.” He stressed that his government wouldn’t interfere with it if it would negatively impact the lives of Egyptian citizens. This statement has added complexity to the situation and caused confusion in Egypt’s international bond market, similar to the issues facing currency speculators using non-deliverable EGP contracts. Kristalina Georgieva, the Managing Director of the International Monetary Fund, equated supporting the Egyptian pound with foreign currency reserves to “pouring water into a pot with holes.” She highlighted that the issue of the Egyptian currency’s exchange rate is not merely economic but is also intertwined with political economy. Over the past year the CBE has raised interest rates by 1000 bps after delivering a jumbo 200-bps rate hike in March. (Zilla Capital)

Suez Canal's annual revenue hits a record of 9.4 billion USD.
In the year ending in June, the Suez Canal set a new record by generating revenues of $9.4 billion. This achievement was accompanied by the highest annual net tonnage of 1.5 billion tons for the year. (Asharq)
Is Egypt set to receive the second IMF tranche following Sisi's remarks?
The future of Egypt's arrangement with the International Monetary Fund (IMF) is uncertain. The first review was delayed because Egypt, in dire need of dollar liquidity, didn't fulfill the conditions set out by the fund. These included adopting a flexible exchange rate and executing a program to sell government-owned firms. (Asharq)
Abu Hashima acquires 5% stake in Beltone Financial through rights issue.
Business magnate Ahmed Abou Hashima has bought a roughly 5% stake in Egypt-based investment banking and brokerage firm, Beltone Financial Holding. He acquired the stake through a rights issue tied to a capital increase. Beltone's EGP 10 billion capital hike ranks as the second largest on the Egyptian Exchange, trailing only behind Orange Egypt's EGP 15 billion increase in March 2020. (Asharq)
Egypt leans towards revoking investment activity exemptions given to governmental entities.
The Egyptian government has given the nod to a proposed law that would eliminate the privileges state entities have enjoyed in investment and economic sectors. This action is in line with strategies to enhance the investment environment and facilitate the private sector's involvement in diverse economic activities, guaranteeing equal opportunities for all. (Asharq)
AD Ports from the UAE plans a 501m USD investment to manage Congo Ports.
The AD Ports Group from the UAE has declared its intention to invest 501 million USD in the operation and management of a multipurpose port in Congo. The Abu Dhabi-based logistics organization secured a 30-year concession, granting them full authority to develop, operate, manage, and maintain the New East Mole Port. The contract commencement follows a prior Head of Terms agreement with the Congolese government. (Waya)
Stock exchange chairman foresees trading of Egyptian treasury bonds by September at the latest.
Egyptian Stock Exchange Chairman, Ramy El Dokani, announced that the treasury bond settlement project has been successfully completed, with settlements now transferred to the Egyptian Central Depository and Registry Company. During a conference outlining the stock exchange's mid-year achievements, El Dokani highlighted that this successful transition was accomplished through effective cooperation with all involved parties. (Hapi Journal)
Moreover:
Ramy El Dokani announced ongoing discussions with the General Authority for Financial Supervision for a permit to conduct investor relations activities in companies. These talks are centered on the authority in charge of the investor manager's records, with Dokani indicating a preference for the Stock Exchange, as per his statement at the Stock Exchange Harvest Conference for the first half of 2023. (Hapi Journal)
China poised to surpass Egypt and Turkey as the world's leading wheat purchaser.
China is set to surpass Egypt and Turkey to become the world's largest wheat buyer, having purchased over 12 million tons in the first 11 months of the current marketing year. A significant majority of this wheat was sourced from Australia. (Arab Finance)
GB Corp Introduces Kredit to Support Small and Medium-Sized Enterprises (SMEs).
GB Corp has inaugurated a new subsidiary, Kredit, to support Egyptian small and medium-sized enterprises (SMEs). Already licensed, Kredit intends to address the funding gap faced by SMEs and provide them with expertise and resources to enhance business growth and stimulate local production. (Arab Finance)