News

Egypt’s Stocks Rise to Two-Month Highs Following Saudi Cash Deposit

Egypt’s Stocks Rise to Two-Month Highs Following Saudi Cash Deposit

REUTERS/Mohamed Abd El Ghany
REUTERS/Mohamed Abd El Ghany

Egypt’s stocks reached a two-month high after receiving a cash deposit from Saudi Arabia, driving speculation that the country is about to devalue its currency, Bloomberg news agency reported.

The benchmark EGX 30 index rose by 3.9 percent by the end of the day, to reach 8505.12 points, in odds with the decline of most emerging markets worldwide.

“The news overnight about the Saudi deposit is prompting investors to speculate that the devaluation is imminent,” Sherif Shebl, an equities trader at Pharos Holding for Financial Investments in Cairo, told Bloomberg.

According to Aswat Masriya, Egypt received a USD 2 billion deposit from Saudi Arabia on Wednesday. The deposit is part of the USD 6 billion Egypt is required to secure from bilateral creditors in order to finalize a USD 12 billion loan from the International Monetary Fund (IMF).

The value of the Egyptian pound has reached record lows of 15.58 against the dollar, according to Bloomberg and Reuters, marking a total loss of 17 percent this month.

n August, Egypt reached a preliminary agreement with the IMF to receive a three-year Extended Facility Fund, which will be used to support the government’s ambitious reform program aiming to reduce the country’s budget deficit.

Chris Jarvis, who is heading the IMF’s mission to Cairo, said at the time that the government’s fiscal policy will aim to reduce public debt to more sustainable levels.

“Over the program period general government debt is expected to decline from about 98% in 15/16 to about 88% of GDP in 2018/19. The aim is to raise revenue and rationalize spending, to reduce the deficit and to free up public funds for high-priority spending, such as infrastructure, health and education, and social protection,” said Jarvis.

“With the implementation of the government reform program, together with the help of Egypt’s friends, the Egyptian economy will return to its full potential,” said Jarvis, adding that the IMF will encourage multilateral agencies and countries across the world to support Egypt during this stage.

At the end of September, Egypt’s foreign reserves rose to USD 19.592 billion, up from USD 16.564 billion the previous month.

12 Egyptian Soldiers Killed in Attack in Sinai
Saudi Arabia 'Recalls' Ambassador to Egypt?

Subscribe to our newsletter


News

More in News

22.jpg.crop_display

Cairo Court Lists Egyptian Football Legend Aboutreika on Terror List

Egyptian StreetsJanuary 19, 2017
32385636795_e6f5d7101d_z

Egypt Secure Spot in Knockout Stage at 2017 Handball World Championship

Egyptian StreetsJanuary 19, 2017
1073779_big-lnd

Egypt’s Essam El-Hadary Makes African Cup History

Egyptian StreetsJanuary 18, 2017
pol

Eight Policemen Killed in Attack in Egypt’s New Valley

Egyptian StreetsJanuary 17, 2017
Tiran Island

Egypt High Court Declares Void Transfer of Tiran and Sanafir to Saudi Arabia

Egyptian StreetsJanuary 16, 2017
Top-best-hd-wallpapers-dubai-skyline-hd-wallpapers-imagen-by-balamuda

Egyptians Invest EGP 13 Billion in Dubai Real Estate in 2016

Egyptian StreetsJanuary 15, 2017
A pharmacist searches for medicine at a pharmacy in Cairo, Egypt, November 17, 2016. REUTERS/Mohamed Abd El Ghany

Medicine Prices in Egypt Increased by up to 20%

Egyptian StreetsJanuary 13, 2017
Navy officers appear to be handing out water bottles to a group of refugees who were prevented from illegally migrating in September 2015. Credit: Military Spokesman

Egypt Prevents 12,192 from Illegally Migrating in 2016

Egyptian StreetsJanuary 12, 2017
Egyptian Streets is an independent, young, and grass roots news media organization aimed at providing readers with an alternate depiction of events that occur on Egyptian and Middle Eastern streets, and to establish an engaging social platform for readers to discover and discuss the various issues that impact the region.

© 2016 ES Media UG. All Rights Reserved.