Egypt’s business digest Oct. 13: Egypt’s $2 bln deposit from Saudi Arabia showed in September reserves
CBE building - YOUM7 (Archive)

CAIRO: No more browsing from site to site, view the top business news stories on Oct.13 here:

Egypt’s $2 bln deposit from Saudi Arabia showed in September reserves

(Reuters) Egypt received a $2 billion central bank deposit from Saudi Arabia in September, the prime minister told Reuters on Thursday, confirming it had been accounted for in the previous month’s foreign reserves total, which stood at $19.6 billion.

The timing of the deposit makes clear it was received before a suspension of petroleum aid by Saudi Arabia, which began on Oct. 1 and had raised questions over the fate of Saudi aid destined for Egypt.

Egypt’s central bank said late on Wednesday that it had received a $2 billion deposit that could bring it closer to clinching a $12 billion IMF lending program aimed at plugging the country’s deficit and balancing its currency markets but had not clarified when the money was received.

Egypt secured a preliminary agreement for the loan in August, but head of the IMF mission in Cairo Chris Jarvis told Reuters at the time that Egypt would have to secure $5-6 billion in bilateral financing before the board grants final approval.

The Saudi deposit follows an agreement by the United Arab Emirates in August to give Egypt’s central bank a $1 billion deposit for six years.

Egypt is also in talks with China. An IMF official said during its annual meeting last week that the IMF and Egypt had made “good progress” on securing the funding but did not specify how much might still be needed.


Government borrows 11.5 bn EGP in T-bills on Thursday

The Egyptian Ministry of Finance will put forward, via the Central Bank of Egypt (CBE), a total of 11.5 billion EGP in treasury bills (T-bills) on Thursday, according to the CBE data.

The auction is divided into two installments; it will auction 5.5 billion EGP in 182-day-term treasury bills, 6 billion EGP will be offered in 364-day-term T-bills.

It is expected that the state’s general budget deficit could reach 322 billion EGP by the end of Fiscal year of 2016/2017. Auctioning the treasury bills and bonds are the government’s financial tools of borrowing.


Exports of Suez Free Zone rises to $1 bn during first six months of 2016: report

Exports of Suez Canal Free zone’s projects boomed to $1 billion in the first half of 2016, compared with $428 million over the same period in the previous year, with an increase of 141 percent, according to a report issued on Thursday by the General Authority for Investments and Free Zones (GAFI).

Meanwhile, the imports decreased to $731 million in the first six months of 2016, comparing to $869 million in the same period, with a drop of 15.9 percent, Youm7 reported the report.


Egypt puts in inta’l tender for buying 30 to 33 tons of 95-octane fuel

The Egyptian General Petroleum Corporation (EGPC) has asked for buying 30 to 33 tons of 95-octane fuel, Reuters reported some merchants, who added that the cargo should be delivered in Alexandria port on Oct. 24-26. October 17 is the deadline of the tender.

Saudi Arabia’s Aramco has suspended petroleum production supply for October.


USD exchange rate ‘stable,’ reaches 8.78 EGP

The USD exchange rate has been stable against the Egyptian Pound, where it reached Thursday 8.58 EGP for sale and 8.88 for purchase. Euro exchange rate reached 9.76 EGP for purchase and 9.78 EGP for sale.

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