{"id":617590,"date":"2024-03-25T00:00:00","date_gmt":"2024-03-25T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/03\/25\/govt-could-up-strategic-reserves-of-basic-commodities-by-20\/"},"modified":"2024-03-25T00:00:00","modified_gmt":"2024-03-25T00:00:00","slug":"govt-could-up-strategic-reserves-of-basic-commodities-by-20","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/03\/25\/govt-could-up-strategic-reserves-of-basic-commodities-by-20\/","title":{"rendered":"Gov\u2019t could up strategic reserves of basic commodities by 20%"},"content":{"rendered":"

Good morning, folks. <\/strong>After a busy last few days, the local business news is giving us all a well-earned break this fine morning. Fresh off the press this morning is news from Valu that it has completed an EGP 888 mn securitization issuance, a GCC alliance looking to snap up 25% of a local healthcare company, and an interview with EFG Hermes Co-CEO Karim Moussa to tell us about their new USD 300 mn education fund for Saudi Arabia.<\/p>\n

But, be sure to watch this space<\/strong>, as we could be in line for some big economy news coming our way with the draft budget for the next fiscal year set to be sent to the House in the next few days.<\/p>\n

So, when do we eat? <\/font><\/strong>Maghrib prayers are at 6:10 pm in the capital city, and you\u2019ll have until 4:24 am tomorrow to hydrate and caffeinate ahead of fajr.<\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/a> #1- Gov\u2019t to stock up on strategic reserves as it gears up for market intervention:<\/strong> Prime Minister Moustafa Madbouly has directed the government to study a plan to ramp up strategic reserves of basic commodities by 20%, according to a cabinet statement<\/a>. The reserves would be imported and offered on the market \u201cin the event of a crisis\u201d in a bid to stabilize commodity prices.<\/p>\n

ICYMI:<\/strong> The move comes a day after President Abdel Fattah El Sisi suggested<\/a> that the government could earmark USD 1-3 bn to import essential commodities to compete directly with the private sector in a bid to lower prices.<\/p>\n

<\/a> #2- The<\/strong> House should receive next fiscal year\u2019s draft budget within days: <\/strong>The House of Representatives is set to receive the draft budget for FY 2024-25 before the end of March, Budget Committee Deputy Chairman Yasser Omar said yesterday.<\/p>\n

BOND WATCH-<\/p>\n

<\/a> Yields on EGP t-bills drop below pre-float levels:<\/strong> The Central Bank of Egypt \u2014 on behalf of the Finance Ministry \u2014 sold six-month and one-year EGP-denominated treasury bills worth EGP 108.6 bn on Thursday at yields of 27.723% and 28.253%, data on the CBE\u2019s website showed. Prior to the float and the 600 bps hike, the six-month note was sold at 28.484% and the one-year one was sold at 29.913%, according to a note by NAEEM Brokerage seen by Enterprise.<\/p>\n

High demand from foreign investors underpinned the downward trajectory of yields,<\/strong> NAEEM said. Thursday\u2019s auction saw the t-bills oversubscribed 5.5x and received bids totaling EGP 333 bn.<\/p>\n

The central bank also sold 3-month and 9-month EGP-denominated t-bills<\/strong> yesterday<\/strong>, worth a combined EGP 50 bn. The 3-month t-bills were oversubscribed 4x and had a yield of 25.596%, while the 9-month t-bills were oversubscribed 6x with a yield of 26.946%.<\/p>\n

DATA POINT-<\/p>\n

<\/a> #1- SCZone racked up USD 2.8 bn worth of port and industrial zone investments in 9M FY<\/strong> 2023-24<\/strong>, spread between 127 projects, according to a cabinet statement<\/a>. The authority has also brought in USD 894 mn in the same type of investments since the start of the calendar year with 37 new projects.<\/p>\n

#2-<\/strong>Egypt \u2014 along with Iraq and the UAE \u2014 were listed among the top ten<\/strong> countries with the worst air pollution<\/strong> in 2023<\/strong>, with Iraq ranking sixth, the UAE ranking seventh, and Egypt ranking ninth, according to a report by Swiss air quality technology company IQAir.<\/p>\n

FACT CHECK-<\/p>\n

No price hikes for unsubsidized bread<\/strong>, says Supply Minister Ali El Moselhi. The minister dismissed claims that unsubsidized bread could soon increase 20% and 25% for fino bread, especially in light of a recent drop in flour prices, in comments to Asharq Business<\/a>.<\/p>\n

WAR WATCH-<\/p>\n

<\/a> UN head Antonio Guterres and El Sisi call for ceasefire amid Israel\u2019s relentless war on<\/strong> Gaza: <\/strong>As Israel besieged<\/a> the Al Amal and Nasser hospitals in Khan Younis and continued to launch deadly strikes on densely populated areas, President Abdel Fattah El Sisi met with UN General-Secretary Antonio Guterres yesterday to stress on the need to increase the flow of aid into the enclave and to establish an immediate ceasefire, according to a Ittihadiya statement<\/a>.<\/p>\n

WHILE IN THE RED SEA- <\/strong>Despite previous assurances that the group would not attack Chinese vessels, a Chinese owned and operated oil tanker was targeted by a Houthi missile attack in the early hours of Saturday morning, US Centcom said in a statement<\/a> yesterday.<\/p>\n

AND- <\/strong>Over 100 business associations \u2014 including US retail lobbying giants American Apparel<\/a>& Footwear Association<\/a> and the National Retail Federation<\/a> that represent some of the world\u2019s largest fashion brands \u2014 have called for stronger Red Sea security protocols in an open letter (pdf)<\/a> from trade security advocacy group WeCare<\/a>.<\/p>\n

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THE BIG STORY ABROAD-<\/p>\n

It\u2019s shaping up to be a relatively quiet, holiday-shortened news week.<\/strong> Friday-Monday are off in much of the Western world in observance of the Good Friday and Easter, while Indian markets are closed today as the nation celebrates Holi and markets in Greece are also closed today for Independence Day. <\/p>\n

Today is deadline day for Donald Trump<\/strong>, who needs to raise a USD 464 mn guarantee in connection with his appeal of a fraud case. His Truth Social network is set to go public with a Spac<\/a> that his supporters have pumped to the moon, but there\u2019s no vote before Friday and a listing on NYSE would come a bit further down the road.<\/p>\n

Sam Bankman-Fried will be sentenced on Thursday<\/strong> after his conviction on fraud charges and related charges. And oddly enough: FTX customers may still get all of their money back<\/a>. <\/p>\n

MEANWHILE-<\/strong><\/p>\n