Egypt’s Central Bank Monitors Return of Foreign Investors to Local Market

A man counts Egyptian pounds outside a bank in Cairo, Egypt October 24, 2016. (Reuters)
A man counts Egyptian pounds outside a bank in Cairo, Egypt October 24, 2016. (Reuters)
TT
20

Egypt’s Central Bank Monitors Return of Foreign Investors to Local Market

A man counts Egyptian pounds outside a bank in Cairo, Egypt October 24, 2016. (Reuters)
A man counts Egyptian pounds outside a bank in Cairo, Egypt October 24, 2016. (Reuters)

The Central Bank of Egypt said on Monday it was monitoring inflows from foreign investors that exceeded $925 million since Jan. 11.

In a statement, the central bank said Egypt has received $925 million in indirect investments in local debt instruments since Wednesday, noting a significant increase in the country’s liquidity in foreign currency, attained through the local market, Egyptian expats’ remittances and the tourism sector.

The Egyptian pound witnessed a sharp decline last Wednesday, to reach its lowest level in its history against most currencies.

The black market in the country has recovered greatly over the course of months as a result of the scarcity of the dollar, which resulted in the accumulation of products and commodities in Egyptian ports, causing prices to rise to record levels due to the decline in supply.

In its statement, the central bank said the new indicators represented positive improvements for the exchange rate in the country.

It highlighted the slowdown of the US dollar trading price against the Egyptian pound to post an average of EGP29.61 at the end of Monday’s transactions, down from close to EGP32 on Wednesday.

The central bank added that the banking sector has covered over $2 billion of importers’ and bank clients’ demands for the US dollar over the past three days.

For the fourth consecutive month, the central bank’s net international reserves (NIRs) rose by $470 million to record $34 billion, up from $33.5 billion by the end of November.



Iraq’s Oil Ministry Says Procedures for Oil Exports through Turkish Pipeline Complete

The Iraqi oil minister's announcement comes after the Iraqi parliament approved on February 2 a budget amendment that set a rate of $16 per barrel for oil transport and production costs in Kurdistan. (AFP)
The Iraqi oil minister's announcement comes after the Iraqi parliament approved on February 2 a budget amendment that set a rate of $16 per barrel for oil transport and production costs in Kurdistan. (AFP)
TT
20

Iraq’s Oil Ministry Says Procedures for Oil Exports through Turkish Pipeline Complete

The Iraqi oil minister's announcement comes after the Iraqi parliament approved on February 2 a budget amendment that set a rate of $16 per barrel for oil transport and production costs in Kurdistan. (AFP)
The Iraqi oil minister's announcement comes after the Iraqi parliament approved on February 2 a budget amendment that set a rate of $16 per barrel for oil transport and production costs in Kurdistan. (AFP)

Iraq's oil ministry said in a statement on Saturday that all procedures had been completed to allow the resumption of exports through the Iraq-Türkiye pipeline.

Iraq's oil minister said on Monday that oil exports from the semi-autonomous Kurdistan region will resume next week, resolving a near two-year dispute that has disrupted crude flows as ties between Baghdad and Erbil improve.

US President Donald Trump's administration is putting pressure on Iraq to allow Kurdish oil exports to restart or face sanctions alongside Iran, sources have told Reuters. An Iraqi official later denied pressure or the threat of sanctions.

The federal government of Iraq and the Kurdistan Regional Government (KRG) held technical talks following the oil minister's statements earlier this week to iron out details necessary for the resumption of exports, such as a payment mechanism acceptable to oil companies.

The Iraqi oil minister's announcement comes after the Iraqi parliament approved on February 2 a budget amendment that set a rate of $16 per barrel for oil transport and production costs in Kurdistan.

The amendment also requires the KRG transfer its oil output to the state-run State Oil Marketing Organization (SOMO)

The oil ministry in its Saturday statement asked the KRG to start delivering crude to SOMO in order for exports to resume.