{"id":636864,"date":"2017-11-02T03:50:53","date_gmt":"2017-11-02T03:50:53","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2017\/11\/02\/what-were-tracking-on-02-november-2017\/"},"modified":"2017-11-02T03:50:53","modified_gmt":"2017-11-02T03:50:53","slug":"what-were-tracking-on-02-november-2017","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2017\/11\/02\/what-were-tracking-on-02-november-2017\/","title":{"rendered":"What we\u2019re tracking on 02 November 2017"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-04\"><\/a><strong>Happy Float-a-versary: We\u2019d like to take a moment to remind everyone that tomorrow is the one-year anniversary of the EGP float <\/strong>\u2014 or the turning point in Egypt\u2019s economic recovery. On the morning of 3 November last year, the Central Bank of Egypt moved \u201cwith immediate effect, to a liberalised exchange rate regime to quell any distortions in the domestic foreign currency market \u2026 [to] allow market demand and supply dynamics to work effectively in order to create an environment of reliable and sustainable provision of foreign currency.\u201d In a stroke, the EGP went from being the fourth most-expensive currency in global emerging markets to the third cheapest. The move was critical to securing Egypt\u2019s USD 12 bn IMF loan. From the rally in the carry trade to improving tourism and spiraling inflation, 2017 has been the post-float year. We\u2019ll leave you with <a href=\"https:\/\/enterprise.press\/issues\/2016\/11\/04\/special-issue-petrol-gas-prices-rose-last-night-everything-need-know-happened-yesterday\/\">last year\u2019s special issue on the EGP float<\/a> and our <a href=\"https:\/\/enterprise.press\/2016\/12\/08\/tarek-amer-2016-enterprise-newsmaker-year\/\">extensive interview shortly after with CBE Governor Tarek Amer<\/a>, our Newsmaker of the Year for 2016.<\/p>\n<p>As <a href=\"https:\/\/enterprise.press\/stories\/2017\/11\/01\/what-were-tracking-on-01-november-2017\/\">we noted yesterday<\/a>, <strong>CBE Governor Tarek Amer marked the occasion by giving his take on how the float has helped the economy<\/strong>. A move to a complete float of the EGP will help the economy withstand future shocks, said Amer at a gathering organized by the Canadian-Egyptian Business Council. He expects that the EGP will appreciate and continue to do so as foreign direct investment increases. The banking sector had managed to draw in some USD 80 bn as a result of the move, <a href=\"https:\/\/alborsanews.com\/2017\/11\/01\/1062161\">he added<\/a>.<\/p>\n<p><strong>Tunisia is one year behind Egypt: <\/strong>Tunisia has asked banks to stop giving credit to importers of non-essential goods, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2017-10-31\/tunisia-curbs-credit-for-non-essential-goods-as-fx-reserves-dip\">Jihen Laghmari and Lin Noueihed write for Bloomberg<\/a>. The limits are designed to curb a growing budget deficit and a decline in FX reserves. \u201cThe move mirrors import restrictions imposed in nearby Egypt as it struggled with acute foreign-currency shortages that virtually paralyzed trade and investment before the central bank floated the pound in November. Foreign reserves in Egypt have recovered since most capital restrictions were removed last year,\u201d despite the drop in the EGP\u2019s value and the rise in inflation. The Tunisian dinar is loosely pegged to a basket of currencies.<\/p>\n<p><strong>Fed leaves interest rates on hold:<\/strong> The Federal Reserve kept interest rates unchanged on Wednesday on the back of a solid US economic growth and a strengthening labor market. \u201cThe labor market has continued to strengthen and ... economic activity has been rising at a solid rate despite hurricane-related disruptions,\u201d the <a href=\"https:\/\/www.federalreserve.gov\/newsevents\/pressreleases\/monetary20171101a.htm\">Federal Open Market Committee said in a statement<\/a> after its unanimous policy decision. The Fed did acknowledge, however, that inflation remained soft but did not downgrade their assessment of pricing expectations.<\/p>\n<p>(Closer to home: The Central Bank of Egypt\u2019s Monetary Policy Committee <a href=\"http:\/\/www.cbe.org.eg\/en\/MonetaryPolicy\/Pages\/MPCMeetingSchedule.aspx\">meets two weeks from today<\/a> on 16 November. We don\u2019t expect an interest rate cut until its 28 December meeting at the earliest.)<\/p>\n<p><strong>This comes as US President Donald Trump plans to nominate Jerome Powell, a sitting Fed governor since 2012, as chair of the US Federal Reserve<\/strong>, replacing Janet Yellen. The former Carlyle Group managing director and ex-Treasury undersecretary reportedly favors a gradual increase in interest rates while supporting Trump\u2019s move towards deregulation. <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2017-11-01\/powell-to-be-trump-s-nominee-for-fed-chair-replacing-yellen-wsj\">Bloomberg<\/a>, the <a href=\"https:\/\/www.wsj.com\/articles\/trump-to-tap-feds-jerome-powell-for-fed-chairman-1509568166\">Wall Street Journal<\/a> and the <a href=\"https:\/\/www.ft.com\/content\/0a401588-b8d5-11e7-9bfb-4a9c83ffa852\">Financial Times<\/a> are all out with pieces claiming Powell will be The Donald\u2019s nominee.<\/p>\n<p>And speaking of Amreeka, <strong>could expanded US sanctions on Russia impact Egypt\u2019s oil and gas industry? <\/strong>The US Treasury Department\u2019s Office of Foreign Asset Control (OFAC) published yesterday \u201can amendment to sanctions against exploration or production for deepwater, Arctic offshore, or shale projects implemented by Russian companies, including abroad,\u201d <a href=\"http:\/\/www.reuters.com\/article\/russia-usa-energy-sanctions\/expanded-u-s-sanctions-may-affect-russias-foreign-expansion-in-oil-and-gas-idUSL8N1N74IM\">Reuters reports<\/a>. Among the triggers is a Russian oil company breaking the 33% ownership barrier, the newswire notes. <strong>Where is Russia involved in deep water work? Look no further than Egypt<\/strong>, where Rosneft <a href=\"https:\/\/enterprise.press\/stories\/2017\/10\/22\/rosneft-looking-into-expanding-zohr-stake\/\">recently closed its acquisition of a 30% stake in the Zohr<\/a> supergiant field and is believed to be in the market for an additional 5% share. Russia has recently been <a href=\"https:\/\/enterprise.press\/stories\/2017\/10\/31\/russia-using-rosneft-as-a-foreign-policy-tool-nyt\/\">accused of using Rosneft<\/a> as a foreign policy tool. (Shocking that any nation state would do so, no?) <a href=\"https:\/\/www.treasury.gov\/resource-center\/sanctions\/Programs\/Documents\/eo13662_directive4_20171031.pdf\">The OFAC regs are here (pdf)<\/a> for those who want to have a look.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Happy Float-a-versary: We\u2019d like to take a moment to remind everyone that tomorrow is the one-year anniversary of the EGP float \u2014 or the turning point in Egypt\u2019s economic recovery. On the morning of 3 November last year, the Central Bank of Egypt moved \u201cwith immediate effect, to a liberalised exchange rate regime to quell [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7204],"tags":[72,74],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-636864","post","type-post","status-publish","format-standard","hentry","category-what-were-tracking-today","tag-enterpriseam","tag-what-were-tracking-today","wpautop","entry"],"acf":{"mongo_id":"31a760cf-cffa-4398-9f64-1fc12f5710da","order":"0","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[636862],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What we\u2019re tracking on 02 November 2017 - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2017\/11\/02\/what-were-tracking-on-02-november-2017\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What we\u2019re tracking on 02 November 2017\" \/>\n<meta property=\"og:description\" content=\"Happy Float-a-versary: We\u2019d like to take a moment to remind everyone that tomorrow is the one-year anniversary of the EGP float \u2014 or the turning point in Egypt\u2019s economic recovery. 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But do\u2026","rel":"","context":"In &quot;What We're Tracking Today&quot;","block_context":{"text":"What We're Tracking Today","link":"https:\/\/enterpriseam.com\/egypt\/category\/what-were-tracking-today\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2017\/2\/801.png?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":616889,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/03\/12\/this-evening-customers-sold-c-egp-765-mn-in-fx-at-al-ahly-exchange-and-misr-exchange\/","url_meta":{"origin":636864,"position":1},"title":"THIS EVENING: Customers sold c.EGP 765 mn in FX at Al Ahly Exchange and Misr Exchange","author":"enterpriseam admin","date":"12 March 2024","format":false,"excerpt":"Good afternoon, folks, and happy hump day. Even with Ramadan, the news cycle hasn\u2019t slowed down and is still going strong with more updates after last week\u2019s float. So, when do we eat? Maghrib prayers are at 6:02 pm in the capital, and you\u2019ll have until 4:41 am tomorrow to\u2026","rel":"","context":"In &quot;WHAT WE\u2019RE TRACKING TONIGHT&quot;","block_context":{"text":"WHAT WE\u2019RE TRACKING TONIGHT","link":"https:\/\/enterpriseam.com\/egypt\/category\/what-were-tracking-tonight\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/1\/166.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":649460,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/03\/01\/what-were-tracking-this-week-194\/","url_meta":{"origin":636864,"position":2},"title":"What we\u2019re tracking this week","author":"enterpriseam admin","date":"1 March 2017","format":false,"excerpt":"German Chancellor Angela Merkel is due in Cairo tomorrow, accompanied by a 10-company trade delegation, Ambassador Julius Georg Luy told Al Borsa. Luy described Egypt\u2019s economic reform program as bold and positive and said the EGP float helped attract foreign currency inflows. In addition to meetings with senior government officials\u2026","rel":"","context":"In &quot;What We\u2019re Tracking This Week&quot;","block_context":{"text":"What We\u2019re Tracking This Week","link":"https:\/\/enterpriseam.com\/egypt\/category\/what-were-tracking-this-week\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":652189,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/01\/03\/prime-minister-sees-exchange-rate-stabilizing-in-three-months\/","url_meta":{"origin":636864,"position":3},"title":"Prime Minister sees exchange rate stabilizing in three months","author":"enterpriseam admin","date":"3 January 2017","format":false,"excerpt":"Sending a message to the public: The exchange rate should stabilize in three months\u2019 time as overall economic conditions begin to improve, Prime Minister Sherif Ismail promised. Paving the way for that stability is Egypt\u2019s transformation into a free market economy through legislative reforms, the gradual phase-out of subsidies, and\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":617112,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/03\/17\/foreign-investors-are-loving-egypt-post-float\/","url_meta":{"origin":636864,"position":4},"title":"Foreign investors are loving Egypt post float","author":"enterpriseam admin","date":"17 March 2024","format":false,"excerpt":"The CBE raised EGP 217.9 bn-worth of one-year t-bills and EGP 46.8 bn-worth of six-month t-bills on Thursday","rel":"","context":"In &quot;FX WATCH&quot;","block_context":{"text":"FX WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/fx-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/3\/1389.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":634825,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/01\/24\/foreign-currency-trading-on-interbank-system-climbs-to-usd-14-5-bn-amer-says\/","url_meta":{"origin":636864,"position":5},"title":"Foreign currency trading on interbank system climbs to USD 14.5 bn, Amer says","author":"enterpriseam admin","date":"24 January 2018","format":false,"excerpt":"Foreign currency trading on the interbank system domestically climbed to USD 14.5 bn since the EGP float in November 2016, Central Bank Governor Tarek Amer told Bloomberg. 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