{"id":644803,"date":"2017-07-04T04:03:13","date_gmt":"2017-07-04T04:03:13","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2017\/07\/04\/fitch-says-egypt-banks-fx-liquidity-to-improve-as-transfer-cap-ends\/"},"modified":"2017-07-04T04:03:13","modified_gmt":"2017-07-04T04:03:13","slug":"fitch-says-egypt-banks-fx-liquidity-to-improve-as-transfer-cap-ends","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2017\/07\/04\/fitch-says-egypt-banks-fx-liquidity-to-improve-as-transfer-cap-ends\/","title":{"rendered":"Fitch says Egypt Banks' FX liquidity to improve as transfer cap ends"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-01\"><\/a> <strong>Fitch says Egypt Banks' FX liquidity to improve as transfer cap ends:<\/strong> Egypt's removal of FX transfer limits will help to restore confidence in the economy and attract foreign investments, increasing the availability of FC and helping banks provide more lending needed by FC borrowers, particularly importers, Fitch Ratings says. \u201cWe expect a greater inflow from foreign investors now that the Central Bank of Egypt (CBE) has ended the USD 100K annual cap on the amount that account holders can transfer outside Egypt. The removal of the cap last month, a requirement of Egypt's lending program with the IMF, should reduce foreign investors' concerns that investments could be trapped in Egypt,\u201d the agency said in <a href=\"http:\/\/af.reuters.com\/article\/egyptNews\/idAFFitbvzVgS\">a statement picked up by Reuters<\/a>. Fitch notes that the banking sector\u2019s FX-denominated loan-deposit ratio is still too high despite falling 3.7 bps in 1Q17, but expects these to given the weak operating environment and a falling EGP.<\/p>\n<p><strong>Other analysts, however, believe that the move to end transfer caps will add pressure to the EGP. <\/strong>The threat appears to come from foreign companies repatriating profits, according to Capital Economics\u2019 Jason Tuvey. \u201cLook at the historical moves of the EGP. You can feel the pressure is coming,\u201d he added. \u201cIt could be the moment of truth of Egypt\u2019s currency. Egypt\u2019s monetary supply has been growing by about 20% per year, while GDP has hovered below 4%. That means the EGP is losing approximately 16% of its value every year,\u201d Focus Economy said in a research note <a href=\"https:\/\/dailynewsegypt.com\/2017\/07\/03\/egypt-pound-fire-cbe-shifts-remove-limits-foreign-currency-transfers\/\">picked up by Daily News Egypt<\/a>. The risks to investors posed by a floating currency, comes from the potential for investors playing the market to lose their capital, should the currency swing dramatically, according to the report. But, in the case of Egypt, the convergence of the currency\u2019s official exchange rate and its black market rate should give investors the confidence that the worst of the fluctuations are over.\u201d<\/p>\n<p><strong>These concerns appear to be far-fetched considering Egypt\u2019s growing net FX reserves.<\/strong> A report by <a href=\"http:\/\/www.almasryalyoum.com\/news\/details\/1156962\">MENA news agency<\/a> citing CBE officials claim FX inflows reached USD 54 bn since the EGP was floated back in November. The banking sector had drawn in USD 20 bn, while USD 25 bn came from foreign funding by multilateral finance institutions and other sources. Foreign investors chipped in with USD 9 bn. Investment and International Cooperation Minister Sahar Nasr<a href=\"http:\/\/www.reuters.com\/article\/egypt-economy-investment-idUSC6N1GS01L\">told Reuters on Monday<\/a> that Egypt has received USD 6.5 bn in foreign direct investment in the 9M2016-17, and expects more than USD 10 bn in the next fiscal year starting in July.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fitch says Egypt Banks' FX liquidity to improve as transfer cap ends: Egypt's removal of FX transfer limits will help to restore confidence in the economy and attract foreign investments, increasing the availability of FC and helping banks provide more lending needed by FC borrowers, particularly importers, Fitch Ratings says. \u201cWe expect a greater inflow [&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":[8572],"tags":[72,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-644803","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"835ef6e9-d69d-4348-9039-55242ebb947b","order":"0","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[644796],"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>Fitch says Egypt Banks&#039; FX liquidity to improve as transfer cap ends - 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\/07\/04\/fitch-says-egypt-banks-fx-liquidity-to-improve-as-transfer-cap-ends\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fitch says Egypt Banks&#039; FX liquidity to improve as transfer cap ends\" \/>\n<meta property=\"og:description\" content=\"Fitch says Egypt Banks&#039; FX liquidity to improve as transfer cap ends: Egypt&#039;s removal of FX transfer limits will help to restore confidence in the economy and attract foreign investments, increasing the availability of FC and helping banks provide more lending needed by FC borrowers, particularly importers, Fitch Ratings says. \u201cWe expect a greater inflow [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2017\/07\/04\/fitch-says-egypt-banks-fx-liquidity-to-improve-as-transfer-cap-ends\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2017-07-04T04:03:13+00:00\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/07\/04\/fitch-says-egypt-banks-fx-liquidity-to-improve-as-transfer-cap-ends\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/07\/04\/fitch-says-egypt-banks-fx-liquidity-to-improve-as-transfer-cap-ends\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Fitch says Egypt Banks' FX liquidity to improve as transfer cap ends\",\"datePublished\":\"2017-07-04T04:03:13+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/07\/04\/fitch-says-egypt-banks-fx-liquidity-to-improve-as-transfer-cap-ends\/\"},\"wordCount\":436,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"keywords\":[\"EnterpriseAM\",\"SPEED ROUND\"],\"articleSection\":[\"Speed Round\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/07\/04\/fitch-says-egypt-banks-fx-liquidity-to-improve-as-transfer-cap-ends\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2017\/07\/04\/fitch-says-egypt-banks-fx-liquidity-to-improve-as-transfer-cap-ends\/\",\"name\":\"Fitch says Egypt Banks' FX liquidity to improve as transfer cap ends - EnterpriseAM Egypt\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#website\"},\"datePublished\":\"2017-07-04T04:03:13+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/07\/04\/fitch-says-egypt-banks-fx-liquidity-to-improve-as-transfer-cap-ends\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/enterpriseam.com\/egypt\/2017\/07\/04\/fitch-says-egypt-banks-fx-liquidity-to-improve-as-transfer-cap-ends\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/07\/04\/fitch-says-egypt-banks-fx-liquidity-to-improve-as-transfer-cap-ends\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/enterpriseam.com\/egypt\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Fitch says Egypt Banks&#8217; 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Fitch had in July revised its outlook for the banking sector from negative to stable, \u201creflecting the stable outlook on the operating environment,\u201d according to the report.What\u2019s\u2026","rel":"","context":"In &quot;Banking&quot;","block_context":{"text":"Banking","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/banking\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/8\/83.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":568057,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/12\/16\/fx-liquidity-at-banks-is-recovering-from-covid\/","url_meta":{"origin":644803,"position":2},"title":"FX liquidity at banks is recovering from covid","author":"enterpriseam admin","date":"16 December 2020","format":false,"excerpt":"The banking sector\u2019s FX liquidity has recovered from pandemic-induced lows, thanks to the return of foreign inflows to capital markets, Fitch Ratings said in a report yesterday. Net foreign assets at banks increased to USD 2.9 bn in October, continuing to rebound after having turned positive in September. Excluding the\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/12\/288.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":625255,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/06\/25\/fx-inflows-and-exchange-rate-stability-boost-banking-sector-forecasts-says-fitch-solutions\/","url_meta":{"origin":644803,"position":3},"title":"FX inflows and exchange rate stability boost banking sector forecasts, says Fitch Solutions","author":"enterpriseam admin","date":"25 June 2024","format":false,"excerpt":"Egypt has signed around USD 57 bn worth of financing in 2024","rel":"","context":"In &quot;Banking&quot;","block_context":{"text":"Banking","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/banking\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/6\/1530.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":554015,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/12\/16\/fitch-thinks-egypt-could-be-up-for-another-imf-program\/","url_meta":{"origin":644803,"position":4},"title":"Fitch thinks Egypt could be up for another IMF program","author":"enterpriseam admin","date":"16 December 2021","format":false,"excerpt":"Egypt\u2019s high exposure to external financing could lead the government to seek a fresh IMF program, especially in the event of a \u201cliquidity shock,\u201d according to a recent Fitch Ratings report. The report points to less accommodative global liquidity and monetary conditions as being key risk factors for Egypt, despite\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/12\/363.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":586887,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/05\/18\/fitch-downgrades-credit-ratings-of-four-local-banks\/","url_meta":{"origin":644803,"position":5},"title":"Fitch downgrades credit ratings of four local banks","author":"enterpriseam admin","date":"18 May 2023","format":false,"excerpt":"The banks now have a rating of B, down from B+","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/5\/1032.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/644803","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=644803"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/644803\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/644796"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=644803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=644803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=644803"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=644803"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=644803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}