NEW REGULATIONS BY THE CENTRAL BANK The Central Egypt (CBE) decided to lift limits on deposits and withdrawals of foreign currency for companies importing non-essential goods as of the 28 th of November 2017. The move reflects the CBE s confidence in the country s foreign currency position, after the improvement in net foreign assets of the banking system, which recorded a surplus of USD10 billion in September 2017 compared to a USD11 billion deficit in December 2016. The CBE also restored the ceiling on banks foreign-currency long position to 10% of their capital, effective the 1 st of December 2017, after being cut to 1% in December 2012. The total long and short positions of foreign and local currencies should not exceed 20% of banks capital. The move is another sign that bank liquidity is improving as a result of Egypt s USD12 billion, three-year IMF program and a currency flotation that halved the EGP s value and helped crush the black market for the USD Reuters Enterprise 29 th November 2017 IN THIS ISSUE Number Of Tourists Increases 55% A New Initiative To Support Entrepreneurship Finance Ministry Keeps Customs Exchange Rate Unchanged Global Container Companies Resume Activities In Egypt Natural Gas Production Climbs 18% Government Supports Cement Exports 1
The Central Agency for Public Mobilization and Statistics (CAPMAS) revealed that the number of tourists visiting Egypt increased in Q3 2017 by 55% compared to the same period last year, exceeding 2.3 million tourists. A government official previously mentioned that Egypt s tourism revenues jumped 211.8% (Y/Y) to USD5.3 billion in the first nine months of 2017. The tourism sector is showing signs of recovery after being hit by the crash of a Russian plane over Sinai in 2015, with hopes to regain pre-2011 levels. The British Embassy in Cairo launched a new initiative called Egypt Starts with a grant worth EGP47 million. The new initiative aims at providing young Egyptian entrepreneurs with training and financing (up to EGP450,000 per company) to help them apply their ideas. The initiative is powered by the accelerator program Flat6Labs, and in partnership with World Bank Group member, International Finance Corporation (IFC). The initiative represents a new pillar in the partnership UK is building with Egypt. With IFC and Flat6Labs we will give Egypt s young entrepreneurs the finance, the advice and the exposure to turn Egyptian ideas into international solutions, and make them the champions of the future economy of Egypt John Casson British Ambassador in Egypt Ahram Online 24 th November 2017 The Finance Ministry stated that it will keep the customs exchange rate unchanged at EGP16 per US Dollar for December. The Ministry added that the decision is consistent with the currency price stabilization in the past period. 2
Global container companies Hapag Lloyd, Yang Ming, Mitsui, NYK and K-line stated that they will resume their navigation activities in the ports of East Port Said and Damietta in 2018 after suspending their activities last April. The five companies also vowed to inject new investments in the logistics field in Port Said and Damietta. The resumption of navigation activities reflects a growing international confidence in the currently ongoing development project implemented by the Egyptian government in the Suez Canal Economic Zone Hesham Arafat Minister of Transportation Egypt Independent 28 th November 2017 Natural gas production increased by 18% in September 2017 to record 3.2 million tons compared to September 2016, according to CAPMAS. The domestic natural gas consumption hiked to 3.7 million tons in September 2017 from 3.4 million tons in the same month last year. On another note, the Petroleum Ministry announced that the recently discovered Zohr gas field, located in the Egyptian Mediterranean Sea, will start production by the end of 2017 with an estimated capacity of 350 million cubic feet per day. Zohr s production will rise gradually to approximately one billion cubic feet of gas per day by mid-2018. The government decided to bear 50% of the transportation costs of cement exports in a bid to support this vital sector. The Egyptian government tends to support cement exports, especially those exported to Africa in order to consolidate bilateral relations with these countries. 3
EGYPT AT GLANCE EXCHANGE RATES 26 24 22 20 23.82 20.99 27 TH NOV 17 5 TH NOV 17 4 TH DEC 16 18 16 USD 17.65 17.84 18.18 14 12 10 EUR 20.99 21.10 20.54 19.00 19.11 8 6 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 STERLING POUND 23.82 23.58 23.08 22.70 22.42 EGP per USD EGP per Euro EGP per Pound Sterling STOCK MARKET 16,000 14,000 12,000 14,572 27 TH NOV 17 5 TH NOV 17 4 TH DEC 16 10,000 8,000 EGX30 14,572 14,220 14,184 11,631 7,464 6,000 EGX70 787 782 785 468 358 4,000 2,000 EGX100 1,842 1,818 1,765 1,095 765 0 T-BILLS AUCTION CONSUMER PRICE INDEX AND MAJOR COMPONENTS AUCTION DATE 3 RD DEC 17 MATURITY (DAYS) 91 AVERAGE YIELD (%) 19.171 WEIGHT IN BASKET % OCT 2016 OCT 2017 (INDEX) (JANUARY 2010=100) Y/Y 29 TH NOV 17 182 19.048 HEADLINE- ALL ITEMS 100% 195.78 256.12 30.82% 3 RD DEC 17 266 18.746 FOOD AND BEVERAGES 39.92% 235.90 329.23 39.56% 29 TH NOV 17 357 18.485 TOBACCO AND RELATED PRODUCTS 2.19% 370.82 464.24 25.19% INTEREST RATES CLOTHING AND FOOTWEAR HOUSING, WATER, ELECTRICITY AND GAS 5.41% 18.37% 142.04 136.88 177.58 155.52 25.02% 13.62% OVERNIGHT DEPOSIT RATE OVERNIGHT LENDING RATE CORRIDOR RATE *AT JULY 2017 **AT MAY 2017 GLOBAL COMMODITY PRICES CURRENT* 18.75% 19.75% 19.25% PREVIOUS** 16.75% 17.75% 17.25% FURNISHINGS AND HOUSEHOLD EQUIPMENT MEDICAL CARE TRANSPORTATION COMMUNICATIONS RECREATION AND CULTURE EDUCATION 3.77% 6.33% 5.68% 3.12% 2.43% 4.63% 166.24 172.67 151.47 98.56 207.53 246.00 219.30 209.06 205.11 109.41 293.88 294.16 31.91% 21.07% 35.41% 11.01% 41.61% 19.58% BRENT CRUDE* GOLD** 63.36 1,274.53 27 TH NOV 17 6 TH NOV 17 5 TH DEC 16 63.84 64.27 54.94 1,294.52 1,281.95 1,170.38 56.82 1,314.84 HOTELS, CAFES AND RESTAURANTS MISCELLANEOUS GOODS AND SERVICES 4.43% 3.73% 231.85 136.46 292.51 163.01 26.16% 19.46% WHEAT*** 442 428.25 430.75 408.25 465.00 4 *USD/BARELL **USD/OUNCE SOURCE: BLOOMBERG **USD/BU
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