{"id":656990,"date":"2024-12-12T00:00:00","date_gmt":"2024-12-12T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/12\/12\/the-egp-takes-another-dip\/"},"modified":"2024-12-12T00:00:00","modified_gmt":"2024-12-12T00:00:00","slug":"the-egp-takes-another-dip","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/12\/12\/the-egp-takes-another-dip\/","title":{"rendered":"The EGP takes another dip"},"content":{"rendered":"

Good afternoon all you wonderful people, and welcome to the weekend.<\/strong> We have a packed issue for today, with all the latest on the outlook for the EGP, Spotify Wrapped\u2019s much-maligned 2024 showing, and AI reliance\u2019s impact on human communication and connection.<\/p>\n

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THE BIG STORY TODAY<\/p>\n

#1- The EGP fell to EGP 50.90 against the greenback at some banks during <\/strong>trading today<\/strong>, down from 50.58 at markets\u2019 close yesterday. This new low comes after six weeks of steady declines in the value of the EGP, as authorities move toward allowing for more exchange rate flexibility. <\/p>\n

Maturing short-term treasuries are driving the decline, says Goldman: <\/strong>Goldman Sachs economist for MENA Farouk Soussa told Bloomberg<\/a> that the EGP\u2019s drop is largely a result of a \u201chuge spike\u201d in the redemption of short-term T-bills, which comes as investors opt to maximize their year-end profits rather than roll over their positions. <\/p>\n

Don\u2019t get too discouraged by our slowly eroding purchasing power, though:<\/strong> Soussa is penciling in a rebound for the EGP in the new year, with the economist predicting that Central Bank of Egypt rate cuts in 1Q 2025 will lead to further treasury issuances \u2014 particularly of long-term T-bonds \u2014 that will offer investors a solid opportunity to re-enter the market, thus bolstering the EGP.<\/p>\n

#2- PHD ups its stake in Taaleem to 32.61%: <\/strong>Palm Hills Development (PHD) has purchased an additional 22.1 mn shares \u2014 equivalent to a 3.02% stake \u2014 of higher education outfit Taalem for an average price of EGP 10.5 a pop in an EGP 231.56 mn transaction, according to a company disclosure (pdf)<\/a>. This brings PHD\u2019s stake in Taaleem to 32.61%, after the property development giant\u2019s board greenlighted the purchase of Chairman Yasseen Mansour\u2019s 29.6% stake back in October<\/a>.<\/p>\n

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THE BIG STORY ABROAD<\/p>\n

As a new government begins to take shape in post-Assad Syria, some are citing <\/strong>concerns about the inclusivity of the country\u2019s de facto political leadership. <\/strong>Reuters<\/a> cites four members of the opposition and three diplomats as expressing concerns about a lack of inclusivity in leading rebel faction Hayat Tahrir Al Sham\u2019s (HTS) policy and administrative decisions so far, with sources citing the installation of senior HTS administrators from Idlib in key positions in Damascus and a lack of HTS consultation with other Syrian entities. <\/p>\n

Over in South Korea<\/strong>, the head of President Yoon Suk Yeol\u2019s own party has joined calls<\/a> for the embattled president\u2019s resignation or impeachment after opposition parties submitted a second bill calling for Yoon\u2019s impeachment late last night. Saturday\u2019s vote will be the opposition\u2019s second impeachment attempt in two weeks, with the previous effort stymied by a boycott by Yoon\u2019s fellow party members.<\/p>\n

And in business news, <\/strong>Mark Zuckerberg\u2019s Meta has reportedly donated USD 1 mn to US president-elect Donald Trump\u2019s inauguration fund \u2014 the first such donation by Zuckerberg to a president-elect and a sign that the Facebook owner is looking to mend fences with the incoming US president. (Financial Times<\/a> | Wall Street Journal<\/a>)<\/p>\n

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