CAIRO: No more browsing from site to site, view the top business news stories on Oct.10 here:
Egypt’s annual urban consumer price inflation eases to 14.1 pct in September
(Reuters) – Egypt’s annual urban consumer price inflation eased to 14.1 percent in September, from an eight-year high of 15.5 percent in August, the official statistics agency CAPMAS said on Monday.
Headline inflation jumped in August, raising expectations that the central bank would hike interest rates on Sept. 22, but the central bank held rates citing transitory factors that pushed up costs.
September’s fall is the first in the urban measure since March. Inflation has been rising steadily since April and economists expect it to keep rising as Egypt implements an overhaul that includes subsidy cuts and devaluing its pound.
Egypt’s President Abdel Fattah al-Sisi is under increasing pressure to revive the economy and curb inflation to avoid a public backlash.
Economists say the pound, maintained at 8.78 per dollar, will have to be devalued before the end of the year, driving up prices further given Egypt’s dependence on imported goods.
Egypt has a staff level agreement with the International Monetary Fund over a $12 billion loan program but still needs final approval from the IMF board.
IMF chief Christine Lagarde said on Saturday that Egypt would have to take action on the exchange rate and subsidies before the board could formally approve the loan.
“Looking ahead, despite September’s dip, we expect inflation to rise again soon,” Capital Economics said in a research note on Monday.
“After all, the authorities are edging closer to securing a financing agreement with the IMF and one of the key lending conditions will be a shift to a more flexible exchange rate,” it said, predicting the pound will weaken by around 25 percent against the dollar by end-2017, driving prices up further.
Egypt needs further funds to face climate change risks: Minister
“Egypt is in need for further funds from soft loans provided by the multilateral development banks to achieve its ambitious goals, to benefit from the climate funds and to render Egypt’s projects eco-friendly ones, besides achieving growth and economic development,” said Egyptian Minister of International Cooperation Sahar Nasr in a speech at a ministerial dialogue on climate change in the Washignton-based WB Annual Meetings.
The Minister added that Egypt aims to increase the total generation of renewable energy by 22 percent by 2022.
Egypt’s Ministry of Finance auctions 1.2 bn in T-bonds on Monday
The Ministry of Finance, via the Central Bank of Egypt (CBE) will put forward a total of 1.2 billion EGP ($135 million) in treasury bonds (T-bonds) on Monday, Youm7 reported.
The auction is divided into two installments: A billion EGP in five-year-term bonds and 250 million EGP in 10-year-term bonds.
It is expected that the deficit of the State’s general budget would reach 322 billion EGP ($36 billion).
Egyptian delegation participates in economic conference in Iraq’s Kurdistan
A delegation from the Egyptian Businessmen Association (EBA) participates in a conference organized by the Kurdish Chamber of commerce in Iraq’s Erbil on Monday, Youm7 reported.
The conference of Private Sector’s Role in achieving the economic stability in Kurdistan represents a good step to strengthen cooperation between Egypt and Kurdistan, said EBA chairperson Mohamed Youssef said in a statement.
USD exchange rate ‘stable,’ reaches 8.88 EGP
The USD exchange rate has been stable against the Egyptian Pound, where it reached Monday 8.88 EGP for sale and 8.85 for purchase. Euro exchange rate reached 9.93 EGP for purchase and 9.96 EGP for sale.