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…
Egypt’s Stocks Rise to Two-Month Highs Following Saudi Cash Deposit
October 13, 2016
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