Highest Deficit in Foreign Assets “Ever”
The deficit in net foreign assets grew by EGP 10.5 billion ($340.36 million) in October, reaching its highest level ever at minus EGP 839.2 billion, mainly due to an increase in the Central Bank’s liabilities, according to the bank’s data.
This is the second consecutive month in which the deficit has worsened, after it narrowed in July and August.
Net foreign assets represent the assets of the Central Bank and commercial banks owed by non-residents, minus their liabilities.
The EGP 29.7 billion increase in the Central Bank’s liabilities was partially offset in October by an increase of EGP 12.4 billion in commercial banks’ foreign assets.
The Central Bank has relied on the country’s foreign assets to help support the Egyptian currency over the past two years.
In September 2021, net foreign assets stood at plus EGP 248 billion.
The total amount that left the country exceeded $23 billion in the first two months of the war in Ukraine, according to previous press statements by Finance Minister Mohamed Maait.
IMF: Financing Programme for Egypt Nearing Completion
Kristalina Georgieva, Managing Director of the International Monetary Fund, said that the programme to finance the Egyptian economy is nearing completion and that Egypt will receive the Fund’s full support.
Responding to a question about completing the programme in the first quarter of next year, she added that the Fund is currently working with the Egyptian authorities, who are doing a good job in difficult circumstances, to set priorities in providing support to the population in need and to strengthen opportunities for private sector development.
“Shell Out” Offering, and “Wataniya” Postponed for Unknown Reasons
The Egyptian government is preparing to offer a stake in “Shell Out” stations and is postponing the “Wataniya” deal. The government is working on restructuring the “Shell Out” fuel stations affiliated with the National Service Projects Organisation in preparation for offering a stake in them to the private sector. This comes as part of a plan to diversify the Egyptian economy.
Minister of Planning Hala El-Said affirmed that the government will begin restructuring the company before offering the stake for sale, noting that these procedures will begin after the completion of the deal to sell a stake in “Wataniya” stations, the other company in which the government intends to offer a stake.
The government also announced that the deal to sell a stake in “Wataniya” may be delayed by a few weeks from the scheduled date, without explaining the reasons for the postponement.
The government seeks to implement the state offerings programme as part of its efforts to improve the Egyptian economy and achieve financial stability.
The Egyptian government faces challenges in restructuring “Shell Out” stations, as it must carry out this process carefully to ensure the company is ready to be offered on the market. The postponement of the deal to sell a stake in “Wataniya” stations is another challenge that shows the complexities large economic operations may face in the market.
“Central Bank” Offers Treasury Bills Worth $990 Million
The Central Bank offered a tender for treasury bills worth $990 million, for one year, maturing on 3 December next year.
This tender will be used to repay a previous tender offered by the bank on 6 December 2022, from which $990 million was drawn, and which falls due tomorrow, Tuesday, 5 December.
The tender comes within the series of offerings made by the Central Bank this year; the total value of the six local treasury bill tenders reached about $6.079 billion.
The previous tenders took place on 3 January worth $850 million, 7 February worth $1.066 billion, 2 May worth $1.077 billion, 6 June worth $554.1 million and 14 November worth $1.612 billion, in addition to the current tender.
In the last tender, announced on 13 November, the Central Bank received 28 bids worth $1.719 billion, and accepted bids worth $1.610 billion for one year, maturing on 12 November 2024.
The average interest rate on previous bids ranged between 5.148% and 5.149%.
It is worth noting that some investors had requested a yield of up to 6.009% in the previous tender, but this request was rejected.
Food Division: A Big Increase in Sugar Prices… Soon
The Foodstuffs Division announces that sugar will be available in the markets within 15 days. Ahmed El-Etaby, a member of the Foodstuffs Division, said there is a real crisis related to conflicting sugar prices.
He explained in a phone-in on the programme “90 Minutes” on Al-Mehwar channel on Sunday evening that a few traders control the commodity, noting that within 15 days there will be a big increase in sugar prices and it will be difficult for those who want to buy it to find it.
He added that the Chamber of Commerce and the Ministry of Supply are working hard to strengthen control over the markets, stressing that the Minister of Supply’s decisions will solve the crisis as soon as possible. He warned against any manipulation of strategic goods, considering that this poses a threat to national security.
He stressed the importance of setting the prices of goods everywhere in accordance with the Ministry of Supply’s decisions for sugar importers.
He pointed out that the volume of sugar imported from abroad does not exceed 8%, affirming that there is self-sufficiency in Egypt and that regulating the markets is merely an organisational measure.
To read more details about the sugar crisis: “Sugar in Egypt: Scarcity, Rising Prices and Monopoly despite the Political Leadership’s Attention“.
35% Rise in Rice Prices, and the “Federation of Industries”: Traders’ Greed
Rice prices jumped by 35% during November, while attention was focused on record jumps in sugar prices and continued scarcity of supply.
The price of a tonne of rice rose to between EGP 19,500 and 20,000, compared with about EGP 14,500 at the end of October.
Mostafa El-Saltisy, a member of the Rice Division at the Chamber of Cereal Industries of the Federation of Egyptian Industries, explained that the increases in paddy rice prices affected white rice prices by the same amount.
Magdy El-Walily, a board member of the Chamber of Cereal Industries at the Federation of Industries, pointed out that the rise in prices is due to a shortage of supply despite higher production.
El-Walily explained that hoarding practices by traders and farmers are the reason for the rise in prices.
He stressed the importance of regulatory intervention to prevent hoarders from controlling the market.
Rice production stands at 7 million tonnes of paddy rice, while prices remain high.
The Ministry of Supply recently decided not to offer rice on ration cards, settling for selling some quantities in consumer complexes, as it considers it not worth offering at present.
EGP 832 Million Financing to Develop Zoos
The National Bank of Egypt and the China Development Bank concluded a financing deal worth EGP 832 million for the “Hadayek” company, which manages zoos and recreational facilities in Egypt. The financing aims to raise efficiency and to develop and improve the maintenance management of the Zoo and Orman gardens. Beltone Promotion and Underwriting announced its role as exclusive financial adviser for the financing deal.
Voting Abroad in the Presidential Election Ends
Voting by Egyptians abroad has ended, and electoral committees in embassies, consulates and Egyptian missions in 121 countries around the world completed the counting and tallying of Egyptians’ votes in the 2024 presidential election, which lasted 3 days, from 1 to 3 December.
This comes in preparation for sending the results through diplomatic channels to the National Election Authority, ahead of reviewing them and adding them to the domestic results, and the final result will be announced by the National Election Authority.
Zahran’s Campaign: We Have Videos of Our Candidate’s Supporters
Farid Zahran’s campaign sent a statement saying: “Egyptians abroad continued voting through polling stations spread across various countries of the world, and the campaign’s operations room followed all procedures related to voting through the relevant delegates.”
It continued: “The campaign received a number of video clips showing Egyptians’ support for candidate Farid Zahran, expressing their desire to participate effectively in shaping Egypt’s future.”
The campaign said it had not received any reports of violations or problems affecting the voting process, and praised the harmony and consonance that prevailed in this democratic process.
It also praised the statement issued by the National Election Authority the previous day, which confirmed the success and smooth flow of voting abroad, after the campaign had complained about pictures of (a certain candidate) being raised inside polling stations, but the Higher Election Committee reassured everyone that they were mere celebrations.
“Interior”: Ready to Secure the Election… and “We Are Neutral”
On the security front, the Ministry of Interior is getting ready to secure the presidential election. In case you have forgotten or pretended to forget, the presidential election inside Egypt will be held six days from the time of writing this newsletter, on 10, 11 and 12 December.
A high-ranking security source said that Minister of Interior Major General Mahmoud Tawfik directed his assistants to raise readiness to the maximum level to secure the electoral process without interfering in any way in its course, enabling voters to reach their polling stations and cast their votes easily and smoothly.
The security source stressed the readiness of all the relevant security sectors of the Ministry of Interior, in coordination with the relevant authorities, to secure the presidential election marathon and enable citizens to exercise their constitutional right.
Defence Minister Commenting on Events: The Army Is the Nation’s Fortress, and There Is No Place for the Weak
Minister of Defence and Military Production General Mohamed Zaki stressed the importance of possessing rational power as a fundamental guarantee for achieving security and peace in the modern world.
The minister pointed out that the Egyptian Armed Forces remain a faithful fortress for the nation’s capabilities and a guardian and protector of the homeland, preserving its security and stability.
In his speech at the opening of the “EDEX 2023” exhibition, the minister highlighted the importance of this international event at a time of escalating tensions and wars.
The minister addressed the current situation in the world, especially the military escalation in Gaza, adding that our world today has no room for the weak, and that possessing power is the fundamental guarantee for achieving safety and peace.
The Minister of Defence praised the pioneering role played by the Egyptian Armed Forces in enhancing safety and stability, considering them the protector of the homeland and the preserver of its stability.
The minister devoted part of his speech to events in the Middle East, pointing to the dangerous escalation of the situation in Gaza and the need to achieve balance and peace.
General Mohamed Zaki pointed to the importance of the “EDEX 2023” exhibition as a global platform that gives countries and companies the opportunity to showcase the latest military techniques and technology. He also praised President Abdel Fattah al-Sisi’s directives to sponsor the exhibition, expressing his hope that the exhibition will be a platform for enhancing cooperation and exchanging expertise in the field of defence and military industries.
“Media Professionals”: Reham Saeed Banned from Satellite Channels
On the media front, the Media Professionals Syndicate decided to ban Reham Saeed from appearing on screens until the complaints filed against her have been examined, for violating the contract concluded between her and Al-Shams satellite channel while at the same time contracting with Hey channel and appearing on its screen, in addition to not regularising her status in the syndicate.
Head of the Media Professionals Syndicate Tarek Saada said: “Reham violated Article 71 of the syndicate’s law.” Al-Shams channel filed a complaint with the Media Professionals Syndicate accusing Reham Saeed of violating the terms of the contract between them and of posting on her Facebook page that she “decided to withdraw from the channel due to her health conditions while taking legal measures to terminate the contract”.
