business : CBE decisions strike blow to black market, say banking experts
Wednesday 6 March 2024 10:18 PMThe Central Bank of Egypt’s (CBE) decisions on Wednesday struck a severe blow to the black market, according to several banking leaders and experts. El-Etreby also revealed that a foreign company deposited $25m in Banque Misr following the CBE’s decisions today. He described it as a crucial and positive step that will significantly contribute to eliminating speculation and the parallel market for foreign currency. Tamer Youssef, a banking expert specializing in asset management, believes that the main objective of the decisions is to attract direct foreign investments. He explained that given the low local savings rates, direct foreign investments are vital for financing growth, as they enable the use of available production capacities in all economic sectors, thus stimulating growth.
Source:Daily News Egypt
March 07, 2024 04:52 UTC
Egypt prepares giant project to expand Suez Canal
Egypt is preparing to conduct a feasibility study on a giant new project aiming to expand the Suez Canal to speed up transit times and avoid maritime traffic jams. Journalist Ahmed Moussa revealed, through his program “By My Responsibility” on Sunday, that the chairman of the Suez Canal Authority (SCA) Osama Rabie will present to President Abdel Fattah al-Sisi the “duplication of the Suez Canal” project. He assured that the project to double the Suez Canal will have a 100 percent safety rate. He noted that in the past 70 to 80 ships would travel through the canal daily, and following the project the passage of ships through Egypt will increase and the passage period will be reduced to approximately nine hours. The new expansion proposals are based on plans first floated in 2021 after the grounding of the giant ship Ever Given, which closed much of the vital sea lane for about a week.
Source:Egypt Independent
March 06, 2024 22:16 UTC
Egypt, IMF agree on $8bn expanded loan package
The International Monetary Fund (IMF) announced Wednesday an expansion of its loan program with Egypt, increasing the total amount from $3bnto $8bn. The original $3bn agreement, reached in December 2022 under the Extended Fund Facility (EFF), aimed to support Egypt’s economic stability through a shift towards a flexible exchange rate system. However, progress stalled due to delays in implementing reforms, including asset divestment and private sector development, and Egypt’s continued tight control over the pound. The IMF considers this agreement crucial for Egypt’s continued stability, which holds significance for the entire region. Social Spending: Vulnerable groups will be protected through continued social safety nets.
Source:Daily News Egypt
March 06, 2024 19:11 UTC
Cabinet approves draft decision to pardon some prisoners on occasion of Eid al-Fitr, Sinai Liberation Day
CAIRO - 6 March 2024: The cabinet approved a draft decision of the President of the Republic regarding pardoning the remainder of the sentence for some convicts. The decision comes on the occasion of the celebration of Eid al-Fitr, corresponding to the first of Shawwal 1445 AH, as well as the celebration of the Sinai Liberation Day, corresponding to 4/25/2024.
Source:Egypt Today
March 06, 2024 18:47 UTC
Egypt approves launch of 7th phase of Instant Payment Initiative, settling export burdens worth LE 8B
CAIRO - 6 March 2024: The Cabinet, in its meeting on Wednesday, approved the launch of the seventh phase of the Instant Payment Initiative to settle export burdens, with a value of LE 8 billion. At the beginning of the Cabinet session, Mostafa Madbouly praised the important decisions taken by the Central Bank earlier in the day. The Prime Minister added that these steps aim to unify the exchange rate, a crucial measure that contributes to eliminating the accumulation of demand for foreign currency, following the closure of the gap between the official market exchange rate and the parallel rate. The Prime Minister stressed the continued coordination between the government and the Central Bank in the coming days to closely monitor the markets and understand the impact of these decisions. "Our goal in this stage is to work and coordinate with the Central Bank to reduce inflation rates, regulate debt, and transition it to a downward path.
Source:Egypt Today
March 06, 2024 16:22 UTC
Biden officials deliver a tough message on Gaza to Netanyahu’s chief political foe
CNN —When top Biden administration officials conveyed their frustrations over the “unacceptable and unsustainable” situation in Gaza to Benny Gantz, they were delivering their message to Israeli Prime Minister Benjamin’s Netanyahu’s chief political foe. According to an Israeli official, Gantz emerged from those meetings with deep concerns and some surprise about the state of US-Israeli relations over the war in Gaza. Gantz was surprised by how critical the White House was about the humanitarian situation in Gaza and a potential military offensive into Rafah, an Israeli official said. “Help us help you,” was the message, according to an Israeli official. “We’ve raised these things before, but there’s greater urgency now on the humanitarian front,” the administration official said.
Source:Egypt Independent
March 06, 2024 15:41 UTC
CBE move to let currency trade freely to reinforce efforts to tackle inflation: Egypt’s PM
He underscored that unifying the exchange rate of the Egyptian pound is essential in reducing the heightened demand for foreign currency. The devaluation of the Egyptian currency brings an end to months of speculation regarding the timing of Egypt's currency devaluation. Huge foreign currency inflowsThe devaluation follows Egypt's recent signing of a colossal $35 billion agreement with the Abu Dhabi Developmental Holding Company, representing the largest foreign direct investment in the country's history. This investment is crucial amid a foreign currency shortage that Egypt has been grappling with over the past two years. Moody's, a global credit rating agency, has anticipated that the IMF will enhance Egypt's loan program to $10 billion.
Source:Egypt Today
March 06, 2024 14:06 UTC
Egypt allows exchange rate to be determined by market mechanisms: CBE
The Monetary Policy Committee of the Central Bank of Egypt (CBE) decided on Wednesday to allow the exchange rate to be determined according to market mechanisms. The CBE is also committed to continuing its efforts to move towards flexible inflation, it said, by continuing to target inflation as a nominal anchor for monetary policy while allowing the exchange rate to be determined according to market mechanisms. “Unifying the exchange rate is a very important measure, as it contributes to eliminating the accumulation of foreign currency demand following the closure of the gap between the official and parallel market exchange rates, the committee explained. The CBE on Wednesday raised interest rates by 600 basis points, equivalent to six percent, to reach 27.25 percent. and what the restrictive policy requires of raising key interest rates to bring real interest rates to positive levels.
Source:Egypt Independent
March 06, 2024 11:54 UTC
Egypt’s Trade Minister, WTO Director-General discuss commerce challenges, potential solutions
Egyptian Trade and Industry Minister Ahmed Samir concluded his visit in Riyadh by meeting with World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala. They discussed pressing global trade challenges and potential solutions. Minister Samir emphasized the WTO’s role in aiding member states, particularly developing nations, to navigate crises that impede global economic progress. The conference’s recommendations aim to bolster member states’ capacities for economic and social advancement, environmental preservation, and equitable participation in international trade. Furthermore, Minister Samir highlighted Egypt’s advocacy for the WTO’s development agenda at the conference.
Source:Daily News Egypt
March 06, 2024 09:23 UTC
CBE advances economic empowerment of women
Second – Projects and InitiativesThe Central Bank of Egypt has initiated several projects aimed at enhancing the financial inclusion and economic empowerment of women. Banks have devised a plan to foster financial inclusion and economic empowerment, particularly for women, who make up half of the populace. 4- Women’s Economic and Social Empowerment Program (WESEP)The Central Bank of Egypt is a key participant in the Women’s Economic and Social Empowerment Program. Fourth – Notable Advancements in Women’s Financial InclusionThe Central Bank of Egypt (CBE) has made significant strides in advancing women’s economic empowerment. From March 2019 to March 2023, the CBE’s initiatives for women’s financial inclusion have facilitated the provision of approximately 1.2 million financial products for women.
Source:Daily News Egypt
March 06, 2024 09:22 UTC
Contact Financial Holding triumphs amidst economic challenges with notable year-end growth
Contact Financial Holding, Egypt’s premier non-bank financial services provider, announced Tuesday its consolidated financial results for the quarter and year ending 31 December 2023. The Group showcased robust year-on-year growth, with operating income increasing by 20% in financing and 79% in insurance. Bottom-line results were equally impressive, with financing net income up by 30% and insurance net income surging by 84%. The consolidated normalised net income ascended by 14% year-on-year to EGP 693 million, underscoring the Group’s resilience and strategic growth amidst a challenging economic landscape. Reflecting on the year’s performance, management expressed satisfaction, stating, “Ending the year on a positive note, we delivered robust financial and operational results.
Source:Daily News Egypt
March 06, 2024 08:14 UTC
Insights from 18th EFG Hermes One-on-One Conference inauguration
EFG Hermes, a subsidiary of EFG Holding and the premier investment bank in the MENA region, in partnership with the Dubai Financial Market (DFM), proudly launched the 18th Annual EFG Hermes One-on-One Conference on 4 March 2024. This landmark event, renowned as the largest global investment forum focusing on MENA, is hosted at the JW Marriott Hotel Marina until 7 March 2024. Despite intense competition, EFG Hermes has solidified its position as the region’s top investment bank, commanding substantial market shares in Egypt, Saudi Arabia, the UAE, and Kuwait. aiBANK, acquired in 2021, has achieved a 20% return on equity in its second operational year under EFG Hermes’ stewardship. Although a global financial crisis may not be imminent, we are witnessing a development crisis with isolated issues cropping up in various locations.
Source:Daily News Egypt
March 06, 2024 08:11 UTC
Deputy FM reviews Egypt's efforts in confronting Israeli atrocities
CAIRO – 5 March 2024: Deputy Minister of Foreign Affairs for African Affairs Hamdi Sanad Loza reviewed Egypt's efforts in confronting Israeli atrocities and supporting Palestinian civilians in withstanding the fierce Israeli aggression. In a press release, the Foreign Ministry said that the meeting shed light on the need to attain an immediate ceasefire and reject any Israeli measures, aiming to forcibly displace the Palestinian people out of their lands. The meeting also underlined the need of holding the international community responsible in attaining eternal peace based on international legitimacy resolutions, added the ministry. The extraordinary meeting adopted a decision, which includes taking collective measures at the diplomatic front, with the aim of providing international protection to the Palestinian people, along with taking practical steps to increase the flow of humanitarian aid to the war-devastated Gaza Strip. The decision also applauded the crucial role played by Egypt in supporting the steadfastness of the Palestinians in confronting the Israeli aggression.
Source:Egypt Today
March 06, 2024 01:20 UTC
Egypt plans to increase US dollar proceeds: Official
Egyptian cabinet spokesperson Mohamed al-Hommosany announced that the government has a plan to increase US dollar proceeds by raising investments in the field of industry, and providing incentives to attract foreign direct investments there. During a telephone interview with the Extra News satellite channel on Monday, Hommosany said that the state has granted many incentives to foreign and Egyptian investors to develop and deepen industry in various fields and sectors. Industry is a fundamental backbone of the economy, he explained, and the state has plans – such as the strategic directions document for the Egyptian economy discussed during the National Dialogue – to increase Egyptian exports during the next few years. Hommosany confirmed that by implementing plans and providing incentives to investors, work is progressing to increase investments not only to provide domestic increases, but to further increase Egyptian exports to foreign markets.
Source:Egypt Independent
March 05, 2024 22:42 UTC
Gaza ceasefire quartet-talks still on going in Cairo
CAIRO – 5 March 2024: A high-ranking Egyptian source told al Qahera news channel that talks hosted in Cairo to reach a truce in the Gaza Strip are still continuing, and a new round of negotiations expected be held between all parties, Wednesday. The second round of Gaza ceasefire negotiations kicked off in Cairo, Monday between delegations of Egypt, Qatar, Hamas, and the United States of America. Cairo hosted the first round of negotiations on Sunday with the aim to reach a humanitarian truce between the Palestinian Hamas movement and Israel in Gaza. An official close to Hamas told AFP that a delegation from the movement headed to Egypt on Saturday evening for the ceasefire agreement and a prisoner swap deal. He added, on condition of anonymity, that Hamas will hand Egypt over the response to the Paris proposal regarding the ceasefire agreement.
Source:Egypt Today
March 05, 2024 18:29 UTC