Central banks could soon transact in digital currencies: The IMF is working on a global infrastructure that would enable central bank digital currencies (CBDCs) to be transacted between countries, IMF Managing Director Kristalina Georgieva told a conference in Morocco, reports Bloomberg. The platform will boost the use of CBDCs and provide a common regulatory framework for the digital currencies, Georgieva said. “CBDCs should not be fragmented national propositions,” Georgieva said. “To have more efficient and fairer transactions we need systems that connect countries: We need interoperability.” Of 114 central banks exploring the digital currencies (including our own), 10 are close to issuing them, she added. Reutersalso had the story.

SOUND SMART- CBDCs would be controlled by central banks and in most cases backed by tangible assets, while cryptocurrencies are nearly always decentralized and often not asset-backed. Issuing digital currencies provides central banks with an option to combat the declining use of cash and rising interest in crypto.

ALSO WORTH NOTING-

  • Instashop acquires GroCart: UAE-based online grocery marketplace Instashopacquired UAE-based B2B e-commerce GroCart, allowing it to tap into the wholesale distribution of food and beverages to restaurants and hotels. (Company statement, pdf)
  • Saudi wealth fund launches pharma investment arm: Saudi Arabia’s Public Investment Fund has launched Lifera, a pharma investment company that aims to channel money into local pharma manufacturing and attract multinationals to the country. (PIF statement)
  • Airbus will build up to 100 helicopters in Saudi Arabia by 2030 after signing a USD 6.7 bn investment agreement with KSA defense company Scopa Industries. (Bloomberg)
  • Goldman lowers China growth forecast: Goldman Sachs has downgraded China’s growth forecast to 5.4% from 6% in 2023 and to 4.5% from 4.6% in 2024 amid a downturn in the real estate sector and weakening demand. (Reuters)
  • Intel pledges biggest foreign investment in German history: US chipmaker Intel will invest a record EUR 30 bn — and receive subsidies worth nearly EUR 10 bn — to build two chipmaking plants in Germany. (Reuters)

EGX30

17,989

-0.2% (YTD: +23.2%)

USD (CBE)

Buy 30.84

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

18.25% deposit

19.25% lending

Tadawul

11,422

-0.8% (YTD: +9.0%)

ADX

9,453

+0.1% (YTD: -7.4%)

DFM

3,787

-0.1% (YTD: +13.5%)

S&P 500

4,410

+0.4% (YTD: +14.9%)

FTSE 100

7,588

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Euro Stoxx 50

4,362

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Brent crude

USD 76.09

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Natural gas (Nymex)

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+1.1%

Gold

USD 1,950.51

-0.4%

BTC

USD 26,721

+1.0% (YTD: +61.1%)

THE CLOSING BELL-

The EGX30 fell 0.2% at yesterday’s close on turnover of EGP 2.64 bn. Local investors were net sellers. The index is up 23.2% YTD.

In the green: Mopco (+13.8%), ADIB (+3.9%) and Credit Agricole (+1.6%).

In the red: Palm Hills Developments (-2.8%), Rameda (-2.4%) and Ibnsina Pharma (-2.3%).

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