Good afternoon, ladies and gentlemen, and happy Monday. Today is the midway mark to this shorter business week.

THE BIG STORY TODAY

Remittances from Egyptians abroad surged 73.8% y-o-y in May to USD 2.7 bn, according to a statement (pdf) from the central bank. On a monthly basis, remittances increased for the third consecutive month, rising 26.6%.

Remember: Egyptians abroad have started sending more of their remittances through official channels after the float of the EGP. Remittance inflows saw a major dip over the past year or so as Egyptians abroad either held onto their money or sent it back through parallel mechanisms — remittances were down 30% y-o-y in 2023. The government said it wants to raise remittances — one of Egypt’s biggest sources of FX — from Egyptian expats by 10% each year to reach USD 53 bn by 2030.

THE BIG STORY ABROAD-

All about French politics: France is now heading towards “difficult negotiations” to form a new government after its leftist Nouveau Front Populaire (NFP) bloc scored an unexpected victory in yesterday’s parliamentary election, upending Marine Le Pen’s push for a far-right government. Despite coming out on top, the NFP failed to secure the majority needed to form a government. In the meantime, French President Emmanuel Macron has turned down Prime Minister Gabriel Attal's resignation, asking him to sit tight in order to maintain an orderly transition. This comes at a critical time for France, as the country prepares to host the Paris Olympics in less than three weeks. (Reuters | AP | Financial Times)

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

  • FX reserves reach new high: Net foreign reserves increased by USD 258 mn in June to just under USD 46.4 bn, surpassing the previous record high of USD 46.1 bn recorded in May.
  • QIB is out of the running for United Bank: The Qatar Islamic Bank (QIB) has reportedly backed out of the race to acquire Central Bank of Egypt-owned lender United Bank after the two parties failed to agree on a valuation for the bank.
  • Egypt did not breach its investment treaty in dispute with UAE oil company in EGP 3 bn claim: The World Bank’s International Center for the Settlement of Investment Disputes (ICSID) last week dismissedclaims brought against the Egyptian government by UAE-based CTIP Oil & Gas Investment Limited.

☀️ TOMORROW’S WEATHER- Mercury is peaking with a high of 39°C and dropping to a low of 25°C in Cairo at night, according to our favorite weather app.

Tags: