UPDATE: Egypt’s business digest Nov. 4: EGX gains 17.7b EGP in week
Egyptian Exchange - YOUM7 (Archive)
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EGX gains 17.7b EGP in week

The Egyptian Exchange closed on positive performance this week with gains amounting to 17.7 billion EGP to close the week trading at 411.05 billion EGP, Youm7 reported.

The capital market rose to EGP 428.7 billion compared with EGP 411 billion last week.

The benchmark index EGX 30 rose 5.6 percent to close at 8,811 points, while the broader EGX 70 index of the leading smaller and mid cap enterprises (SME) jumped 3.36 percent to close at 351 points during the course of the week ended Thursday.

On Thursday, the Central Bank of Egypt (CBE) decided to float the exchange rate.

 

Egypt can no longer afford stop-gap economic measures: PM

(Reuters) – Prime Minister Sherif Ismail said on Friday Egypt “no longer has the luxury” of being able to phase out subsidies over five years as planned, a day after the central bank floated the Egyptian pound and the government raised fuel prices.

Ismail told a news conference at which changes to tariffs and subsidies were announced that the government aimed to cut a subsidy bill that currently totals 201 billion Egyptian pounds ($13.4 billion) a year, to free up cash for other spending.

“Yesterday was an important day in the history of the Egyptian economy, with the moves in foreign currency and petroleum prices,” he said.

On Thursday Egypt devalued the pound from a peg of 8.8 pounds to the dollar to an initial guidance rate of 13, before allowing the currency to drift down to about 14.65 at a special dollar auction.

From Sunday, the rate will be determined not by the central bank but by banks trading via the interbank system. Egypt had faced pressure to devalue since 2011, as dwindling foreign exchange reserves forced the central bank to ration dollars and impose capital controls.

Hours later on Thursday, the government raised fuel prices by 30.5-46.8 percent, a move Petroleum Minister Tarek El Molla said would save 22 billion pounds. Both measures are part of an austerity programme aimed at securing a three-year, $12 billion International Monetary Fund loan agreement.

 

Egypt currency forwards point to further slide in pound

(Reuters) – Currency markets pointed on Friday to a further fall in Egypt’s pound over the next few months and year following its sharp devaluation by the government on Thursday.

Non-deliverable forwards (NDF), which traders use to position for rises and falls in a currency, indicated the pound would drop to 15.6 to the dollar in three-months’ time , to 15.9 to the dollar in six-months and 17 to the dollar in a year’s time.

Egypt initially devalued the pound by about a third on Thursday, taking it from its previous peg of 8.8 to the dollar to an initial guidance rate of 13 before allowing the currency to drift down to about 14.65 at a special dollar auction.

The move, which came in tandem with a sharp hike in interest rates, is designed to steady Egypt’s strained financial markets and clear the path for a $12 billion aid loan from the International Monetary Fund.

 

Gov’t announces new prices of fuel after increase

The government has announced new prices of the petroleum products after raising fuel prices starting from Friday.

  • Octane 80 will increase from 1.6 EGP to 2.35 EGP per litre.
  • Octane 92 will increase from 2.6 EGP to 3.5 EGP per litre.
  • Diesel will increase from 1.8 EGP to 2.35 EGP per litre.

 

USD exchange rate reaches 14.75 EGP

 

The USD exchange rate has reached 14.75 EGP for purchase against the Egyptian Pound, after it has been stable over the past weeks at 8.88 EGP.

The government has announced floating the Egyptian pound in a bid to flourish the economy and meet IMF’s requests.

The rate has reached 15.75 EGP for sale. Euro exchange rate reached 16.31 EGP for purchase and 17.51 EGP for sale.

 

Egypt can no longer afford stop-gap economic measures: PM

(REUTES): Prime Minister Sherif Ismail said on Friday that Egypt “no longer has the luxury” of being able to phase out subsidies over five years as planned, a day after the government raised fuel prices and the central bank floated the Egyptian pound.

Ismail told a news conference at which various changes to tariffs and subsidies were flagged that the government aims to cut a subsidy bill that currently totals 201 billion Egyptian pounds ($13.4 billion) a year to free up cash for other spending.

 

Tobacco price not to be affected by EGP floating

The decision to float the Egyptian pound will not affect the price of tobacco, said Ibrahim Imbaby, the head of the Smoke department at the Egyptian Federation of Industries.

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