Daily Newsletter

Wednesday, November 29, 2023

by Yasmine Yousri
Daily Newsletter
Newsletter Headlines
Dollar Dips to 3-Month Low as Fed Hints at Rate Cuts - Investors on High Alert!
Gold Surges to Seven-Month High as Dollar and Bond Yields Decline Amidst
Growing Confidence in Fed Rate Cuts
EBRD Explores Investment in Egyptian State-Owned Banks Amidst Privatization Plans,
Initiates Talks with Sovereign Fund
Central Bank of Egypt Urges Stringent Cybersecurity Rules for Banks
1) Dollar Dips to 3-Month Low as Fed Hints at Rate Cuts
The dollar reached a three-month low on Tuesday, accompanied
by stable US Treasury yields, following signals from a Fed official
hinting at potential rate cuts. Investors, gaining confidence,
anticipate the US Federal Reserve to initiate interest rate
reductions by mid-2024. The US currency declined by 0.4 percent
against a basket of six peers, trading at its lowest point since mid-
August.
2) Gold Surges to Seven-Month High as Dollar and
Bond Yields Decline Amidst Growing Confidence in Fed
Rate Cuts
Gold prices soared to reach a nearly seven-month high on
Wednesday, propelled by a sustained decline in the U.S. dollar
and bond yields. This surge in gold values was fueled by growing
investor confidence, stemming from the belief that the Federal
Reserve is likely to implement rate cuts within the first half of the
upcoming year. Spot gold exhibited a 0.2% increase, reaching a
noteworthy USD 2,044.53 per ounce by 0453 GMT, marking its
highest point since May 5. Simultaneously, U.S. gold futures for
December delivery experienced a 0.3% uptick, settling at USD
2,045.40 per ounce.
3) EBRD Explores Investment in Egyptian State-Owned
Banks Amidst Privatization Plans, Initiates Talks with
Sovereign Fund
The European Bank for Reconstruction and Development (EBRD)
has expressed a keen interest in acquiring minority stakes in various
state-owned financial institutions that are slated for privatization
2 Daily Newsletter 53
Egypt’s Treasury Market Soars to EGP 5.04 Trillion
in October 2023: Ministry of Finance Plans EGP
1.26 Trillion Borrowing to Address Debt and
Budget Deficit
5) Egypt’s Treasury Market Soars to EGP 5.04 Trillion in October 2023: Ministry of Finance Plans EGP 1.26 Trillion
Borrowing to Address Debt and Budget Deficit
The Ministry of Finance has released a report indicating that the cumulative value of local treasury bills and bonds surged
to approximately EGP 5.04 trillion in October 2023. The breakdown reveals that treasury bills constituted around EGP 2.7
trillion, while treasury bonds comprised about EGP 2.32 trillion.
As per the latest findings, the government is strategizing to secure EGP 1.26 trillion from the local market in the second
quarter of the fiscal year 2023/2024. This fund injection is earmarked to fulfill prior debt commitments and address the
budget deficit. To achieve this, the Ministry of Finance plans to conduct 52 tenders for bills, amounting to EGP 1.19 trillion,
and 26 tenders for bonds, totaling EGP 41.5 billion, spanning from October to December 2023. These financial maneuvers
as part of the government’s offering program. In pursuit of this
objective, the European lender has initiated discussions with the align with the ministry’s broader fiscal strategy and commitment to managing economic obligations effectively.
Sovereign Fund of Egypt (SFE) to explore investment opportunities
in United Bank and Banque du Caire. These two banks are among
the three financial institutions officially listed for privatization. e-Finance (EFIH) Explores Strategic Moves: Set to Acquire Two
However, the progress of these talks is contingent upon Retail-Focused Digital Payments Companies, Eyes Entry into Retail
obtaining clarity regarding the specific size of the stakes that the
government is willing to divest. Heike Harmgart, the head of the Payments Market
EBRD’s operations in the south- and east-Mediterranean regions,
revealed that the bank is actively engaged in these discussions,
reflecting a strategic interest in participating in the privatization
e-Finance (EFIH) is currently in discussions to acquire two digital payments companies with a retail focus, as revealed by
an insider at the company. The first acquisition, already approved by the board earlier this month, is anticipated to be
process of state-owned financial institutions in Egypt.
finalized by the end of the year. Simultaneously, a second acquisition is in the evaluation phase and could potentially be
concluded in the first half of 2024. These strategic acquisitions are poised to pave the way for e-Finance’s venture into the
retail payments market, marking a significant expansion for the company.
4) Central Bank of Egypt Urges Stringent Cybersecurity
Rules for Banks In a parallel development, e-Finance (EFIH) has entered into a cooperative partnership with IBM Egypt. The collaboration
aims to explore the establishment of a digital banking platform seamlessly integrated with artificial intelligence. This
The Central Bank of Egypt (CBE) has emphasized the imperative
platform is designed to cater to the needs of banks and financial institutions, aligning with the instructions and policies
for banks to adhere to and implement robust cybersecurity set forth by the Central Bank of Egypt (CBE). The move signifies e-Finance’s commitment to advancing digital banking
protocols, particularly in the aftermath of the hacking incident solutions in accordance with regulatory guidelines.
affecting Fawry FWRY’s systems. The CBE underscores that, while
the banking sector generally upholds all prescribed cybersecurity
standards, occasional minor issues or errors may arise. These rules
encompass a comprehensive framework aimed at fortifying the
resilience of financial institutions against cyber threats, ensuring
the security and integrity of sensitive data, and mitigating risks
associated with digital transactions.
Spot Gold Rises 0.2% to $2,044.53, U.S. Gold
Futures for December Surge 0.3% to $2,045.40 per
Ounce, Reaching Peaks Unseen Since May 5th!