Egypt's Net Foreign Assets Drop by $1.3 Bln in February

The headquarters of the Central Bank of Egypt in the capital, Cairo. (Reuters)
The headquarters of the Central Bank of Egypt in the capital, Cairo. (Reuters)
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Egypt's Net Foreign Assets Drop by $1.3 Bln in February

The headquarters of the Central Bank of Egypt in the capital, Cairo. (Reuters)
The headquarters of the Central Bank of Egypt in the capital, Cairo. (Reuters)

Egypt's net foreign assets (NFAs) declined by 49.8 billion Egyptian pounds in February as pressure on the currency continued to build.

The second drop in as many months took NFAs to a negative 704.23 billion Egyptian pounds from minus 654.43 billion at the end of January, the Central Bank of Egypt data showed.

That equates to a February decline of $1.31 billion using end-of-month central bank exchange rates, Reuters calculations show.

The central bank allowed the Egyptian pound's official price to depreciate against the dollar by 1.4% in February.

The official exchange rate on Sunday was 30.9, while street dealers were offering to buy dollars for 36 pounds, down from 35 last week.

NFAs, which represent banking system assets owed by non-residents minus liabilities, have helped the central bank to support Egypt's currency over the past 18 months.

Egypt's NFAs had stood at a positive 248 billion pounds in September 2021, before the decline began.

Meanwhile, the National Bank of Egypt (NBE) and Banque Misr have recently issued two new certificates of deposit (CDs) with fixed yields of 19% and a decreasing yield of 22%.

The first certificate is fixed for three years at a rate of 19% annually, and the return is paid monthly. The other CD has a decreasing yield of 22%, disbursing a yield of 22% over the first year, 18% over the second year, and 16% over the third year, according to the Middle East News Agency (MENA).

The issuance of these certificates reflects the positive outlook of a drop in interest rates in the coming period and a gradual decline in inflation amid stability in the markets, added MENA.

Moreover, the central bank announced on Thursday that the Monetary Policy Committee (MPC) decided to raise key policy rates by 200 bps.

In its meeting, the overnight deposit rate, overnight lending rate, and the rate of the main operation were raised by 200 bps to 18.25%, 19.25%, and 18.75%, respectively.

Meanwhile, Egyptian Exchange (EGX) indexes posted collective gains at the close of Sunday's trading session.

The market capital gained about 18 billion pounds to close at 1.067 trillion pounds, amid transactions that totaled 2 billion pounds.

The EGX 30 benchmark index was up by 1.68%, registering 16,694.46 points.

The broader EGX 70 EWI index of the leading small and mid-cap enterprises (SMEs) increased by 1.41%, ending at 2,846.98 points.

The all-embracing EGX 100 index rose by 1.63%, closing at 4,301.27 points.



Syria, World Bank Agree to Set Up Fund for Recovery and Reconstruction

FILE PHOTO: A view of the Syrian central bank, after the ouster of Syria's Bashar al-Assad, in Damascus, Syria, January 12, 2025. REUTERS/Firas Makdesi/File Photo
FILE PHOTO: A view of the Syrian central bank, after the ouster of Syria's Bashar al-Assad, in Damascus, Syria, January 12, 2025. REUTERS/Firas Makdesi/File Photo
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Syria, World Bank Agree to Set Up Fund for Recovery and Reconstruction

FILE PHOTO: A view of the Syrian central bank, after the ouster of Syria's Bashar al-Assad, in Damascus, Syria, January 12, 2025. REUTERS/Firas Makdesi/File Photo
FILE PHOTO: A view of the Syrian central bank, after the ouster of Syria's Bashar al-Assad, in Damascus, Syria, January 12, 2025. REUTERS/Firas Makdesi/File Photo

Syria and the World Bank have agreed to set up a multi-donor ‌trust ‌fund focused ‌on ⁠recovery and reconstruction, they ⁠said in a joint statement on ⁠Sunday, as Damascus ‌aims to ‌rebuild after ‌a ‌more than decade-long civil war.

The fund aims ‌to provide concessional financing, ⁠investment guarantees, technical ⁠support, and capacity building, said Reuters.


China’s Economic Growth Picks up as Exports Boom, Consumers Balk

Construction workers walk in front of a residential compound in Beijing, China, 19 October 2026. (EPA)
Construction workers walk in front of a residential compound in Beijing, China, 19 October 2026. (EPA)
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China’s Economic Growth Picks up as Exports Boom, Consumers Balk

Construction workers walk in front of a residential compound in Beijing, China, 19 October 2026. (EPA)
Construction workers walk in front of a residential compound in Beijing, China, 19 October 2026. (EPA)

China's economic growth bounced off three-year lows in the third quarter, as roaring exports offset consumers' tight grip on their wallets, though analysts warn the growing reliance on external drivers is deepening structural imbalances.

The 4.5% pace beat consensus forecasts and analysts expect Beijing to reach its 2026 target of 4.5%-5.0% without resorting to additional stimulus, helped by a strong start to the year and some recent modest fiscal and monetary support.

Monday's data showed retail sales again lagging industrial output, while the property market was still in a downturn, having significantly eroded household wealth for the past five years.

Together with last week's releases showing soft consumer inflation and exports soaring by more than a third, a picture emerges of an economy increasingly dominant in global markets but struggling to generate prosperity at home.

Weak domestic demand has pushed Zhang Chao's motorbike headlights company to all but abandon selling in China to focus on export markets, where orders have doubled this year.

"It's too competitive and there's no profit," Zhang, who manages Southeast Asia operations for his firm, ‌said of China. "The ‌barrier to entry is a bit lower overseas."

Weak consumer demand has intensified price wars, forcing companies to ‌slash ⁠costs, including on ⁠payroll.

Having lost her sales job in June, Laura Shi still road-tripped through China's week-long national holidays in October, but slept in her car on most nights to save on hotels.

"The downside was that I couldn't shower, and there was noise outside," she said.

China's increasingly lopsided growth is prompting the rest of the world to react.

The European Union and China have agreed to limit hybrid car exports to the bloc, but Brussels is planning further curbs as data last week showed September's trade surpluses with Germany and France each jumping more than 200% year-on-year.

"This year’s growth figures highlight a deeper rebalancing challenge for the medium term," ANZ analysts said in a note on Monday's data.

"Rising trade tensions, protectionist measures and geopolitical frictions pose significant risks to future growth," they said, adding "the economy is exposed ⁠to changes in the external environment to a greater extent than policymakers would prefer."

The yuan firmed to its ‌strongest level since July 2022 on Monday.

EXPORT TSUNAMI

China is on track to top last year's $1.2 ‌trillion trade surplus despite rising global tensions.

Exports ranging from chicken meat and beauty products to electric cars and prefabricated homes have surged.

Some manufacturers that moved production abroad ‌are coming back, as US tariffs on Chinese goods are now closer to those on rivals such as Vietnam.

"High-tech manufacturing, chip output, new energy ‌vehicles, and export delivery values reflect a competitive industrial upgrading that is real and accelerating," said ITC Markets analyst Andy Ji.

"However, the growth composition remains deeply unbalanced... Growth is export- and state-led. Domestic demand is not yet self-sustaining, and the property sector shows no floor."

Industrial output rose 5.5% in September.

Statistics bureau official Mao Shengyong said the 4.6% growth in the first nine months of the year was "hard won," acknowledging "unbalanced and inadequate development." High-end manufacturing, "the digital economy" and "modern services" contributed more than 40% of the growth over ‌the period.

Even so, Beijing has rolled out fresh support measures, underscoring concerns over lingering weakness beyond the factory sector.

Measures since late September include cheaper credit for infrastructure and tech, modest mortgage subsidies, and more funds for ⁠local governments, whose tight finances contributed ⁠to a 7.2% fall in fixed-asset investment in January-September.

Economists say the measures are enough to dispel fears of missing the growth target, but remain tilted to the supply side.

"China's export expansion is not without limits," Societe Generale economist Michelle Lam said.

"Without a decisive policy shift toward supporting household incomes and consumption, China is likely to remain trapped in a prolonged period of low inflation and sub-par growth."

On the demand side of the ledger, October's holiday saw average spending per trip fall to four-year lows, while social media flare-ups over gruelling work schedules, low pay and weak labor protections are becoming more frequent.

Retail sales were up 1.1% in September, marking the quickest growth in six months, though off a low base.

In the eastern city of Ningbo, a restaurant owner surnamed Dai said many diners now bring their own drinks rather than ordering from the menu.

"Everyone is cutting jobs these days," Dai said. "Sometimes I wonder whether I should let one or two staff members go and do more work myself."

Unemployment inched lower to 5.2% in September, but economists say the figures are flattered by a growing gig economy. Anyone working even one hour a week is considered employed.

In Hangzhou, 26-year-old accountant Carol Huang is angry that her employer almost halved her bonus. But she says similar jobs in the city offer 3,000-6,000 yuan ($449-$897) per month, much less than she earns, so she is staying put.

"What on earth happened to the job market?" Huang said.


Saudi Stock Market Closes 0.82% Higher, Led by Energy Sector

A market data display at the Saudi Tadawul Group headquarters in Riyadh (Tadawul)
A market data display at the Saudi Tadawul Group headquarters in Riyadh (Tadawul)
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Saudi Stock Market Closes 0.82% Higher, Led by Energy Sector

A market data display at the Saudi Tadawul Group headquarters in Riyadh (Tadawul)
A market data display at the Saudi Tadawul Group headquarters in Riyadh (Tadawul)

Saudi Arabia's benchmark Tadawul All Share Index (TASI) ended Sunday's session up 0.82 percent at 10,189 points, with trading turnover reaching SAR 2.3 billion ($613 million).

The index hit an intraday high of 10,215 points and a low of 10,107 points.

Among sectors, energy led the gains, rising 1.99 percent, supported by a 2.06 percent increase in Saudi Aramco shares, which closed at SAR 25.80.

Al Arabia, Ladun and Saudi Vitrified Clay Pipe Co. were the top gainers, advancing between 7 and 9 percent to close at SAR 42.12, SAR 1.99 and SAR 16.90, respectively.

On the losing side, Watani Iron Steel topped the list of decliners, falling 8 percent to SAR 3.22, followed by Najran Cement, which dropped 2.32 percent to SAR 5.47, and SAICO, which shed 2.12 percent to close at SAR 9.25.