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

‘There Is No Planet B’: 16 Inspiring Photos of the Global Youth Climate Strike

Egyptian StreetsSeptember 20, 2019

Small, Scattered Anti-Government Protests Occur in Egypt

Egyptian StreetsSeptember 20, 2019

Israeli Tourism in Sinai Soars to Over 1 Million Vacationers in 2019

Egyptian StreetsSeptember 20, 2019

New Egyptian Law Requires Access to Customer Data From Careem, Uber

Egyptian StreetsSeptember 20, 2019

Egypt’s Ban from Weightlifting World Championships Could Extend to 2020 Olympics

Egyptian StreetsSeptember 19, 2019

‘Aladdin’ Star Mena Massoud Chosen Ambassador for ‘Speak Egyptian’ Initiative

Egyptian StreetsSeptember 19, 2019

Egypt Will Mark World Cleanup Day with 4 Massive Eco Campaigns

Egyptian StreetsSeptember 18, 2019

Egypt Issues Arrest Warrant for Italian Diplomat Accused of Smuggling Antiquities

Egyptian StreetsSeptember 17, 2019
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.

© 2017 Egyptian Streets. All Rights Reserved.