Egypt’s financial markets on July 28, 2024, presented a mixed picture, with some sectors showing stability while others faced challenges. Gold prices saw a slight increase, with 21-karat gold, the most popular in Egypt, reaching 3270-3280 Egyptian pounds (EGP) for sale. This represents a modest rise from the previous day’s prices, reflecting ongoing fluctuations in the precious metals market.The foreign exchange market remained relatively stable, with the US dollar to Egyptian pound exchange rate holding steady at around 48.29-48.39 EGP across various banks. This stability in the currency market comes despite recent economic pressures.However, Egypt’s bond market faced significant challenges. Foreign investors withdrew approximately $4 billion from Egyptian government bonds in June. This outflow marks a reversal from the previous months’ trend, where foreign investments in treasury bills had increased to $35.414 billion in April 2024. The slowdown in foreign investment is attributed to regional events, particularly those affecting Red Sea navigation and Suez Canal revenues, which have declined by about 60% in April.In the commodities sector, iron and cement prices saw an increase. The price of one ton of investment iron rose by 443 EGP to 40,070 EGP, while rebar iron increased by 651 EGP to 41,980 EGP. Gray cement also saw a slight increase of 13 EGP, reaching 2,217 EGP per ton.On a more positive note, fruit and vegetable prices remained stable in wholesale markets, providing some relief to consumers. This stability in basic food prices is crucial for maintaining social stability in the face of other economic pressures.Amid these developments, there are indications that Egypt is seeking additional financial support. The government is reportedly in talks with the International Monetary Fund to increase the value of a loan, which could potentially reach $6 billion. This move suggests that Egyptian authorities are actively seeking ways to bolster the country’s financial position in the face of ongoing economic challenges.These varied economic indicators paint a picture of an economy navigating through complex global and regional dynamics, balancing areas of growth and stability against sectors facing more significant pressures.
Key points
- Gold prices in Egypt slightly increased, with 21-karat gold reaching 3270-3280 EGP for sale.
- Foreign investors withdrew $4 billion from Egyptian government bonds in June, reversing previous growth trends.
- The Egyptian government is in talks with the IMF to potentially increase a loan to $6 billion, indicating ongoing economic challenges.
- USD/EGP exchange rate remained stable at around 48.
29-48.
39 EGP, despite economic pressures.
Contradictions👾While most sources report stability or slight increases in gold prices, one source mentions instability in the gold market, particularly noting a shortage of gold bars.
