Matching our projections, MPC decided to keep rates unchanged.
The CBE also decided to increase the required reserve ratio to 18% from 14% on deposits held in local currency with a maturity of less than 3 years. The required reserve ratio on foreign currency deposits remains the same at 10%.
Positive impact on economy but banks will bear the cost. Banks with higher a higher deposit base whose maturity is less than 3 years and whose local currency deposit base is quite high will be more impacted by the decision. HDBK most impacted.
Minister of Finance: It could take another month or two to finalize IMF funding. The size of the funding will only be decided in the final stages of negotiations.
Egypt is looking to China and Japan for new avenues to raise foreign currency funding at a reasonable cost. Targeted funding is around USD500 million from each country.
The government is also looking at the possibility of issuing a green Eurobond if market conditions allow.
The government is still looking to hedge against commodities but will wait for the markets to cool further.
The government has finalized its state ownership policy ahead of the economic conference that is being planned for the end of this month.
EFIC intends to acquire 100 feddan land to build its new compound fertilizers project with an investment cost of USD500 million.
Ministry of Transport received two offers to establish a new company to manage and transport goods via railways. The first was submitted by a consortium comprising ElSewedy-Al-Gharabli Contracting, while the second was submitted by Citadel Investment Group.
OCDI is studying investment opportunities such as land acquisitions or company acquisitions and expects FY22 sales to exceed its EGP14.0 billion target.
EMFD received bank approval for credit facilities of EGP2.0 billion.
EGBE is planning to invest EGP2 bn in non-banking financial companies over the next 3 years, where the bank will acquire direct and indirect stakes in several companies in the sector.
HRHO has invested USD50 million in startups since the beginning of 2022, through the venture capital accelerator EV-EFG.
Around 11 new marinas for tourist yachts could be set up on the Mediterranean and Red Sea coasts.
Suez Canal Economic Zone Authority expects the first phase of the EGP1.5 bn Abbas Berth to start operating in West Port Said port in October 2022.