Égypt-actus
Follow
Find tag "Banque Centrale d'Egypte"
388.6K views | +62 today
Égypt-actus
Égypt-actus
revue de presse sur l'actualité culturelle, archéologique, politique et sociale de l'Égypte
Curated by Egypt-actus
Your new post is loading...
Your new post is loading...
Scooped by Egypt-actus
Scoop.it!

Cartoon : The Economics Of Egypt Central Bank's Interest Rate Hikes

Cartoon : The Economics Of Egypt Central Bank's Interest Rate Hikes | Égypt-actus | Scoop.it

Last week, Egypt’s Central Bank decided to hike interest rates to slow down inflation and curb a sliding pound. 

But what are the economics behind the move? What does it really mean to raise interest rates and what impact does this have?

Contributor Isabel Esterman has drawn up a genius cartoon to explain all.

She says that this is, of course, hugely over-simplified. In order to keep it at a manageable length, the cartoon glosses over things like how fractional reserve lending actually adds to the money supply, repo and discount rates (we don’t need to get that technical anyway…), as well as examples of when these theories don’t work – all topics for another day.

 

More : http://rebeleconomy.com/2013/03/26/cartoon-the-economics-of-egypt-central-banks-interest-rate-hikes/

more...
No comment yet.
Scooped by Egypt-actus
Scoop.it!

Egypt moves to help foreign investors repatriate funds

Egypt moves to help foreign investors repatriate funds | Égypt-actus | Scoop.it

(Reuters) - Egypt's central bank opened a scheme on Sunday allowing foreign investors in the stock and government debt markets access to dollars despite severe shortages of foreign currency.

In a statement posted on its website, the central bank said it had decided to restart and broaden a mechanism helping foreign investors to repatriate their funds that was used in 2000-2003 - also a period of dollar shortages when the Egyptian pound's value fell sharply.

"In addressing the central bank's responsibility for moving the Egyptian economy securely through the exceptional circumstances that the country is going through, it has decided to reenact those mechanisms starting Sunday," the bank said.

Egypt has endured two years of political instability, driving tourists and foreign investors away and draining its foreign reserves. These fell to a critical level of $13.5 billion at the end of February from $36 billion just before the uprising that ousted President Hosni Mubarak in 2011.

The Egyptian pound has lost more than 8 percent against the dollar since the end of last year and central bank has rationed dollars through auctions to commercial banks to slow the slide in the pound and the reserves.

The "Foreign Investors' Repatriation Mechanism" will be expanded to cover treasury bills and bonds in addition to investments on the Egyptian stock market, the statement said.

 

More : http://news.yahoo.com/egypt-moves-help-foreign-investors-repatriate-funds-104335305--sector.html;_ylt=AwrNUPx7mEZRGWoAAQD_wgt.

more...
No comment yet.
Scooped by Egypt-actus
Scoop.it!

Egypt central bank launches tourism initiative

Egypt central bank launches tourism initiative | Égypt-actus | Scoop.it

"The banking sector has a 'national' duty to support Egypt's economy and help preserve the tourism sector, which is one of our main sources of foreign currency," the central bank said in a statement on Wednesday.

 

CBE will provide financing facilities to tourism-related activities, including the construction of hotels and tourist projects, travel agencies and booking services, land transport companies, restaurants and other entertainment activities.

 

The initiative is directed at performing and non-performing customers, excluding debtors of restructured and disputed loans.

 

The facilities to be provided by the banks include granting customers a maximum grace period of one year, whereby all pending payments are added to the original loan amount and customers are exempted from late payment fees.

 

Hotel occupancy rates have dropped by around 25 percent since the Egypt's uprising in early 2011, the tourism ministry has said.

 

The fall in tourism has damaged the country's public debt levels and is the main cause of the ongoing foreign currency crisis and the fall in currency reserves, the ministry added.




Ahram Online, via Egypt.com

more...
No comment yet.
Scooped by Egypt-actus
Scoop.it!

Egypt c.bank reviewing methods to buoy up tourism sectorTravel & Tourism

Egypt c.bank reviewing methods to buoy up tourism sectorTravel & Tourism | Égypt-actus | Scoop.it

The Central Bank of Egypt (CBE) is considering new mechanisms to encourage tourism companies operating in Egypt and to develop the tourism sector, the bank's governor told Zawya.

 

"Current priorities are to boost the Egyptian economy and face the foreign currency reserve shortage. Reviving the tourism sector will be the biggest stimulus for the Egyptian economy in the coming period," said Hisham Ramez, governor, CBE.

 

Ramez pointed out that the mechanisms for encouraging tourism companies are yet to be established, and are to be announced before the end of February 2013.

 

Alaa Samaha, former managing director and CEO of BLOM BankEgypt, confirmed that the tourism sector is capable of putting an end to Egypt's current financial crisis. "It can also face the foreign currency reserve shortage.

 

In fact, the tourism sector is the fastest generator of foreign currencies and can provide several employment opportunities in Egypt," said Samaha.

 

"Political stability and security are the two key drivers for attracting tourists toEgypt, calling for a national consensus to overcome Egypt's crisis," he added.

 

According to the CBE's latest figures, tourism revenues declined by 2% to reach USD 2.6 billion in the first quarter of 2012/2013 fiscal year, compared to USD 2.7 billion during the same period of 2011/2012.

more...
No comment yet.
Scooped by Egypt-actus
Scoop.it!

Egypt C.bank allows overseas Egyptians to repatriate investments

Egypt C.bank allows overseas Egyptians to repatriate investments | Égypt-actus | Scoop.it

The Central Bank of Egypt communicated this decision in a letter to banks (…): "Starting February 10, the Central Bank of Egyptwill allow individual Egyptians who remit money to an Egyptian bank to have the right to repatriate the same value outside Egypt, to the same person who made the transfer. This will be allowed after the individual liquidates, wholly or in part, an investment made in Egypt using the original remittance. (…)

CBE has raised the interest rate payable on savings in local currency to 12.5%, which is another measure intended to increase remittance flows. Remittances to Egypt reached USD 19 billion in 2012, compared with USD 14.3 billion in 2011, according to central bank data.(...)

"Egyptians abroad are cautious about investing in Egypt due to the political situation. This decision will encourage them to invest their money at home in the medium term, as well as increase the legitimate inflows of US dollars into the Egyptian banking system," (...).

 

Egyptians abroad prefer to invest in real estate, gold and bank deposits, which are considered low-risk investments. "The decision will also have a positive impact on the real estate market inEgypt, which has seen tough times over the past two years," Dr. Abdullah said.(....)

 

More on: http://www.zawya.com/story/Egypt_cbank_allows_overseas_Egyptians_to_repatriate_investments-ZAWYA20130205110921/

more...
No comment yet.
Scooped by Egypt-actus
Scoop.it!

Egypt central bank sells $73.1mn at forex auction

Egypt central bank sells $73.1mn at forex auction | Égypt-actus | Scoop.it

Egypt's central bank said on Monday it accepted bids worth $73.1 million with a cut-off price of 6.6920 Egyptian pounds to the dollar at its 17th foreign currency auction. The cut-off price at the previous auction, held on Thursday, was 6.6820.

The auctions are a bid to curb a decline in Egypt's foreign reserves, which the central bank said in December had fallen to a critical level.

 

The reserves are hovering around $15 billion, covering roughly three months' worth of imports.

more...
No comment yet.
Scooped by Egypt-actus
Scoop.it!

Egypt Offers Banks $50 Million as Violence Weighs on Pound

Egypt Offers Banks $50 Million as Violence Weighs on Pound | Égypt-actus | Scoop.it

Egypt’s central bank will offer $50 million at a currency auction today as the pound weakens amid an escalation of unrest since the second anniversary of the Jan. 25 uprising. The benchmark dollar bonds fell for a third day.

The regulator will auction $50 million to local lenders, which are able to bid for as much as $7 million each, according to its announcement on Bloomberg. The central bank sold $48.1 million of the U.S. currency at a Jan. 27 auction, the smallest amount since it started the sales on Dec. 30 in a bid to conserve foreign reserves. Banks received about 28 percent of what they sought that day.(...) The currency’s depreciation accelerated after the last auction as clashes in several Egyptian provinces killed more than 50 people, according to Health Ministry estimates. (...)

 

The central bank will also offer 5 billion Egyptian pounds ($751 million) of seven-day repurchase agreements today. The contracts allow government-debt holders to sell securities back to the regulator for access to temporary funds at 9.75 percent.

more...
No comment yet.
Scooped by Egypt-actus
Scoop.it!

Egypt pound drops further at central bank forex auction

Egypt pound drops further at central bank forex auction | Égypt-actus | Scoop.it

Egypt’s pound extended losses on Tuesday at a central bank forex auction, leaving it 6.8 percent weaker than when the sales were launched at the end of December to safeguard foreign currency reserves.

The central bank set a cut-off price at the currency sale of 6.6025 pounds to the dollar, and the pound weakened further still to 6.6354 on the interbank market . (...)

Egypt’s foreign reserves have tumbled during two years of domestic turmoil. They stood at $36 billion before the uprising that toppled Hosni Mubarak and have now fallen to $15 billion, covering roughly three months of imports.

The central bank has said reserves are now at a critical level, though they have held steady for months with the help of billions of dollars of support from donors, particularly Gulf states.

Qatar has given or lent Egypt $5 billion in budget and other support.

In an initiative made public this week, the central bank said it was allowing lenders to temporarily refinance import operations for their clients, based on the banks’ evaluation of the clients’s creditworthiness.

 

Egypt-actus's insight:

The move is seen helping keep essential imports flowing into Egypt.

Investment bank Beltone said previous rules allowed such financing only to borrowers who could show they had the foreign currency resources to repay them at a later date.

 

"We expect that the temporary facilities in FX will only be provided to particular clients who are importing necessary items that go into the local production of other goods," Beltone said.

 

At Tuesday's auction, the bank offered $75 million and said it had accepted bids worth $73 million.

 

(Writing by Edmund Blair; Editing by John Stonestreet)

 

more...
No comment yet.
Scooped by Egypt-actus
Scoop.it!

Egypt cancels bond auction after interest rate hike last week

Egypt cancels bond auction after interest rate hike last week | Égypt-actus | Scoop.it

Egypt's central bank canceled a three-year treasury bond auction on Monday because bids were too high following an increase in interest rates last week, market participants said.

The central bank had announced an auction for 500 million Egyptian pounds ($73.5 million) worth of the bonds. Bond auctions have been canceled occasionally in the past.

"The rates were high. The yields were 15 percent or more in the bids," said one dealer, speaking on condition of anonymity. A second market participant gave the same reason.(...)

 

In an effort to curb soaring inflation and slow the sliding of the pound the central bank raised interest rates on Thursday after a Monetary Policy Committee Meeting.

 

More on: http://www.cnbc.com/id/100588166

more...
No comment yet.
Scooped by Egypt-actus
Scoop.it!

Egypt moves to help foreign investors repatriate funds

Egypt moves to help foreign investors repatriate funds | Égypt-actus | Scoop.it

Investors in stock and government debt markets will get access to dollars despite shortages of foreign currency.

 

Egypt's central bank opened a scheme today allowing foreign investors in the stock and government debt markets access to dollars despite severe shortages of foreign currency.

In a statement posted on its website, the central bank said it had decided to restart and broaden a mechanism helping foreign investors to repatriate their funds that was used in 2000-2003 - also a period of dollar shortages when the Egyptian pound's value fell sharply.

"In addressing the central bank's responsibility for moving the Egyptian economy securely through the exceptional circumstances that the country is going through, it has decided to reenact those mechanisms starting [today]," the bank said.

 

Egypt has endured two years of political instability, driving tourists and foreign investors away and draining its foreign reserves. These fell to a critical level of $13.5 billion at the end of February from $36 billion just before the uprising that ousted president Hosni Mubarak in 2011.

The Egyptian pound has lost more than 8 per cent against the dollar since the end of last year and central bank has rationed dollars through auctions to commercial banks to slow the slide in the pound and the reserves.

The "Foreign Investors' Repatriation Mechanism" will be expanded to cover treasury bills and bonds in addition to investments on the Egyptian stock market, the statement said.

 

More on: http://www.irishtimes.com/business/economy/world/egypt-moves-to-help-foreign-investors-repatriate-funds-1.1328842

more...
No comment yet.
Scooped by Egypt-actus
Scoop.it!

Egypt's central bank tries to bolster tourism

Egypt's central bank tries to  bolster tourism | Égypt-actus | Scoop.it

The Central Bank of Egypt (CBE) has announced an initiative to boost investment in Egypt's battered tourism sector.

"The banking sector has a 'national' duty to support Egypt's economy and help preserve the tourism sector, which is one of our main sources of foreign currency," the central bank said in a statement on Wednesday.

CBE will provide financing facilities to tourism-related activities, including the construction of hotels and tourist projects, travel agencies and booking services, land transport companies, restaurants and other entertainment activities.

The initiative is directed at performing and non-performing customers, excluding debtors of restructured and disputed loans.

The facilities to be provided by the banks include granting customers a maximum grace period of one year, whereby all pending payments are added to the original loan amount and customers are exempted from late payment fees.

Hotel occupancy rates have dropped by around 25 percent since the Egypt's uprising in early 2011, the tourism ministry has said.

The fall in tourism has damaged the country's public debt levels and is the main cause of the ongoing foreign currency crisis and the fall in currency reserves, the ministry added.

 

http://www.albawaba.com/business/egypt-tourism--477318

more...
No comment yet.
Scooped by Egypt-actus
Scoop.it!

‘No attempt on my life’: Egypt’s Central Bank Governor

‘No attempt on my life’: Egypt’s Central Bank Governor | Égypt-actus | Scoop.it

The governor of the central bank in Egypt, Hisham Ramez, denied reports of an attempt to assassinate him.

The attackers targeted his wealth as opposed to his life, according to Ramez.

He spoke to Al Arabiya saying “the armed attack was for the purpose of robbery, not assassination.”

Earlier on Tuesday, the car of the governor was attacked by four armed people who exchanged fire with police officers. The robbers killed a police officer and hijacked the car.


More on: http://english.alarabiya.net/articles/2013/02/13/266037.html

 


 

more...
No comment yet.
Scooped by Egypt-actus
Scoop.it!

Egypt c.bank tightens dollar trading band on interbank market

Egypt's central bank has tightened the pound's trading band in the interbank foreign exchange market in an apparent move to slow the currency's decline, a forex dealer at a Cairo bank said on Monday.

Banks may now only buy or sell dollars or their equivalent to other banks in a band of 0.01 pounds above or below the weighted average bid at the central bank's regular currency auctions, the dealer said.

Previously, the limit had been 0.5 percent above or below the average bid.

Political strife has triggered a flight into dollars and other foreign currencies, putting renewed pressure on Egypt's foreign reserves.

more...
No comment yet.
Scooped by Egypt-actus
Scoop.it!

Egypt approves Qatari bid for SocGen

Egypt approves Qatari bid for SocGen | Égypt-actus | Scoop.it

Egypt's central bank has approved a request by Qatar National Bank (QNB) to acquire a majority stake in National Societe Generale Bank - Egypt (NSGB).

In a press statement reported on Thursday by state-run news agency MENA, QNB said it had begun legal measures with the Egyptian government to obtain Societe Generale's Egypt unit and expected to make a full acquisition within two months.

QNB presented its offer to acquire NSGB to Egypt's central bank on 19 December 2012.

The leading Qatari bank will pay almost $2 billion its stake.

News of the central bank's approval propelled NSGB's shares, with analysts expecting it to be Thursday's

more...
No comment yet.
Scooped by Egypt-actus
Scoop.it!

Egypt's Central Bank to allow foreign currency facilities for importers

Egypt's Central Bank to allow foreign currency facilities for importers | Égypt-actus | Scoop.it

Egypt's central bank will permit banks to refinance importing operations for clients by providing “temporary facilities in foreign currency” based on the bank's credit evaluation.

The information was provided in a statement dated 14 January and posted on the central bank’s website on Monday.

The central bank law of 2003 allowed such financing only to borrowers who could show they had enough foreign currency resources to repay them.

“They are relaxing the rules for trade financing by allowing banks to lend to clients who don’t possess the foreign exchange resources. It will allow them to get around the shortage of foreign exchange liquidity, so that business activities are not interrupted,” said Mohamed Abu-Basha, an economist at Cairo-based investment bank EFG-Hermes Holding SAE.

“This might help ease the situation a bit, but the problem will remain as there’s a growing gap between the demand and supply of foreign exchange in the market.”

more...
No comment yet.
Scooped by Egypt-actus
Scoop.it!

Egypt’s deputy central bank governor resigns after her boss steps down, amid economic crisis

Egypt’s deputy central bank governor resigns after her boss steps down, amid economic crisis | Égypt-actus | Scoop.it

The central bank of Egypt says the government has accepted the resignation of its deputy governor, less than a week after her boss said he’s quitting.

The changes in the central bank come as Egypt faces a spiraling economic crisis two years after the uprising that forced former President Hosni Mubarak to step down.

A new governor, Hesham Ramez, is to take office in February. His predecessor’s resignation was anticipated after nine years in office.

The bank said the Tuesday resignation of Lobna Helal, the first woman to serve as deputy central bank governor, takes effect Jan. 31.

No reason was given for her resignation. A shake-up in banks was expected following Ramez’ nomination.

The head the National Bank of Egypt, the nation’s largest commercial bank, resigned Monday.

more...
No comment yet.