Egyptian Pound Breaches 50 to the Dollar, Central Bank Says

A man counts Egyptian notes outside a bank in Cairo, Egypt - File photo/Reuters
A man counts Egyptian notes outside a bank in Cairo, Egypt - File photo/Reuters
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Egyptian Pound Breaches 50 to the Dollar, Central Bank Says

A man counts Egyptian notes outside a bank in Cairo, Egypt - File photo/Reuters
A man counts Egyptian notes outside a bank in Cairo, Egypt - File photo/Reuters

The Egyptian pound weakened to close at 50.0024 to the dollar, having breached the 50 pound psychological barrier for the first time since March, Egypt's central bank said on Thursday.
The pound has traded within a narrow range just short of 50 to the dollar since Egypt signed an $8 billion financial support package with the International Monetary Fund on March 6. Under the IMF agreement, Egypt pledged to let supply and demand determine the currency's value.
The currency has been coming under particularly strong pressure in recent weeks ahead of the imminent maturing of Egyptian pound treasury bills held by foreign investors and the due dates of other payments, bankers, brokers and analysts said.
Foreigners were heavy buyers of nine- and 12-month Egyptian treasury bills in the weeks after Egypt signed the IMF agreement, and these are maturing in December and March, creating a potential spike in demand for dollars should enough investors seek to repatriate their funds, Reuters reported.
Over one trillion pounds worth of local currency treasuries are due to mature in each of December and March, according to one banker's calculations using central bank data.
Egypt also has $933 million in repayments to the IMF coming due in the second half of December for borrowings under previous programs, according to IMF data.
In addition, rapid growth in Egypt's money supply has put pressure on the dollar exchange rate while helping to fuel inflation. M2 money supply grew by 29.59% in the year to end-September compared to 2.6% in the United States.
In the year before the agreement, the central bank had kept the currency fixed at 30.85 to the dollar, leading to a severe shortage of foreign currency in the Egyptian market and a slowdown in vital imports.



Oil Climbs as Market Steadies after US Tariff Concerns

FILE PHOTO: File photograph of Tengizchevroil oil and gas refinery plant on Tengiz oil field in western Kazakhstan, August 24, 2004. REUTERS/Shamil Zhumatov/File Photo
FILE PHOTO: File photograph of Tengizchevroil oil and gas refinery plant on Tengiz oil field in western Kazakhstan, August 24, 2004. REUTERS/Shamil Zhumatov/File Photo
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Oil Climbs as Market Steadies after US Tariff Concerns

FILE PHOTO: File photograph of Tengizchevroil oil and gas refinery plant on Tengiz oil field in western Kazakhstan, August 24, 2004. REUTERS/Shamil Zhumatov/File Photo
FILE PHOTO: File photograph of Tengizchevroil oil and gas refinery plant on Tengiz oil field in western Kazakhstan, August 24, 2004. REUTERS/Shamil Zhumatov/File Photo

Oil prices ticked higher on Monday, rebounding after declines last week on concerns about a global trade war, as investors appeared to shrug off US President Donald Trump's latest threat, this time on steel and aluminium imports.
Brent crude futures was up 74 cents, or 1%, to $75.40 a barrel by 0938 GMT while US West Texas Intermediate crude also climbed 1%, or 72 cents, at $71.72 a barrel, Reuters reported. The market posted its third consecutive weekly decline last week on concerns about a global trade war.
"It's tariff uncertainty which is the name of the game. This affects risk appetite in general and has spillover effects into oil," said Harry Tchilinguiran, group head of research at Onyx Capital.
Trump said he will announce on Monday 25% tariffs on all steel and aluminium imports into the US, in another major escalation of his trade policy overhaul.
Just a week ago, the president announced tariffs on Canada, Mexico and China, but suspended those for the neighboring countries the next day.
There are concerns that tariffs could dampen global economic growth and energy demand. But in light of Trump's temporary backdown last week, investors appeared to be shrugging off the steel and aluminium tariff threat for now, Tony Sycamore, a Sydney-based analyst at IG said.
"The market has realized tariff headlines are likely to continue in the weeks and months ahead," he said, adding that there was an equal chance they could be walked back or even increased at some point in the near future.
"So perhaps investors are coming to the conclusion it's not the best course of action to react to every headline negatively."
China's retaliatory tariffs on some US exports are due to take effect on Monday, with no sign as yet of progress in talks between Beijing and Washington.
Oil and gas traders are seeking waivers from Beijing for US crude and liquefied natural gas imports.
Trump said on Sunday that the US is making progress with Russia to end the Ukraine war, but declined to provide details about any communications he had with Russian President Vladimir Putin.
Sanctions imposed on Russian oil trade on January 10 disrupted Moscow's supplies to its top clients China and India.
Washington also stepped up pressure on Iran last week, with the US Treasury imposing new sanctions on a few individuals and tankers that help to ship millions of barrels of Iranian crude oil per year to China.
Sanctions on Iran and failure to reach a nuclear deal are upside risks to oil prices even though Trump's policies are aimed at driving energy prices lower, Citi analysts said in a note.
"We see oil likely trading sideways to down over the next month or so, with the fundamental downward pressure building on crude in our base case throughout the year," they said.
Brent is forecast to average $60 to $65 a barrel in the second half of 2025 as Trump will be persistent in his desire to lower energy prices, and he will ultimately prove to be a bearish influence on the oil market, Citi said.