The CBE decided on Wednesday morning to allow market forces to determine the value of the EGP, while simultaneously raising interest rates by 6%. That is, the overnight deposit rate, the overnight lending rate, and the rate of the main operation were raised by 600bps to 27.25%, 28.25%, and 27.75%, respectively.

The EGP formal rate traded at c.49.5 per USD after breaching the EGP50 border.

NBE and Banque Misr announced on Wednesday the launch and the amendments of high yield certificates of deposits (CDs).

IMF staff and the Egyptian authorities have reached staff level agreement on a set of comprehensive policies and reforms needed to complete the first and second reviews under the Extended Fund Facility arrangement. Staff also considered the authorities’ request for an augmentation of IMF support to Egypt from about USD3 billion to about USD8 billion. Prime Minister said that the agreement will be followed by more funding — in soft loans — from other international partners like the World Bank and EU, that could boost the total funds to USD20 billion.

Cabinet agreed with the IMF to implement structural reforms that would also include a new framework to slow down infrastructure spending, including projects that have so far operated outside regular budget oversight.

The CBE has instructed local banks to lift the spending limit on foreign currency credit cards.

The Cabinet approved launching phase 7 of the initiative to refund the arrears of export subsidies program, owed to exporting companies, up to EGP8 billion.

A government source revealed that the arrears owed to foreign oil companies declined in the recent period from USD6.5 billion to USD6.25 billion. 

The Central Bank will sell EGP110 billion worth of t-bills between today and Sunday.

Cabinet has given Nilus Hotel and Commercial Services and Nilus Residential Services approval to build two commercial and residential towers on the National Democratic Party’s (NDP) former headquarters, according to a decision published in the Official Gazette. The two projects, reportedly worth a combined USD5 billion, are due for completion in 2Q28.

FAIT (FV: EGP39.00, EW) released positive 4Q23 consolidated net profit of EGP650 million (-71% y/y, -25% q/q),  bringing FY23 bottom line to EGP4.5 billion (-7% y/y). The stock is currently trading at P/B24 of 0.8x and P/E24 of 7.0x, with ROAE of 12%.

TAQA Volt, a subsidiary of TAQA Power, the electricity operating arm of TAQA Arabia group, has signed a partnership with Wadi Degla Developments to address the surging demand for electric vehicles (EVs) and sustainable living solutions.

The Ministry of Petroleum is increasing fuel injection in the local market by 8-10% during the month of Ramadan.