Egypt’s business digest Oct. 29: FEDCOC holds emergency meeting over high increase of gold price
An Employee Shows Gold Bangles To A Customer - REUTERS/Danish Siddiqui
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CAIRO: No more browsing from site to site, view the top business news stories on Oct.29 here:

FEDCOC holds emergency meeting over high increase of gold price

The Federation of Egyptian Chamber of Commerce (FEDCOC) will hold an emergency meeting to discuss the high price of gold on Saturday a day after it reached 610 EGP for 21-carat gold, Youm7 reported an official at the FEDCOC.

On Saturday, the price hiked to 620 EGP for 21-carat gold. The gold price has been increased after the U.S. dollar boomed against the Egyptian pound in the parallel market.

 

Egypt’s Ministry of Finance borrows 11.7 bln in T-bills

Egyptian Ministry of Finance, via the Central Bank of Egypt (CBE), will borrow a total of 11.7 billion EGP in treasury bills (T-bills) on Sunday, according to the CBE data.

The offer is divided into two installments; the first auction is worth at 5.7 billion Egypt for 91-day term, while the second 273-day-term offer is worth 6 billion EGP.

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.

 

USD exchange rate ‘stable,’ reaches 8.78 EGP

The USD exchange rate has been stable against the Egyptian Pound, where it reached Saturday 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.

 

CBE gives domestic banks $120 mln amid currency crisis

The Central Bank of Egypt (CBE) will give a total of $120 million to the domestic banks on Tuesday in a way to ease the currency crisis Egypt lives amid the increasing the value of U.S. dollar against the Egyptian pound at the parallel market where one U.S. dollar is sold for 17 EGP.

IMF Managing Director Christine Lagarde said that Egypt is suffering a currency “crisis” that should be addressed, Bloomberg reported on Thursday.

“In terms of the exchange rate, there is currently a crisis because if you look at the official price (and) If you look at a black market price, there is a 100 percent difference. So that needs to be addressed and we believe that the authorities are right to prepare for that.”

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