2023-09-07 09:15:00
The Minister of Finance said that his country needs a guarantee of half a billion dollars to issue its bonds in yuan
Cairo – Al Arabiya.net
Posted on: September 07, 2023: 01:15 PM GST Last updated: September 07, 2023: 01:57 PM GST
Egyptian Finance Minister Mohamed Maait said that his country will obtain $1 billion in yen and yuan bonds before the end of 2023.
Maait added, in exclusive statements to Al-Arabiya TV, that negotiations are underway with the Asian Infrastructure Bank to issue a guarantee for bonds in Chinese yuan.
“We need a guarantee of half a billion dollars to issue our bonds in Chinese yuan,” he said, noting that the guarantees for issuing bonds in Japanese yen have been completed.
The Egyptian Minister of Finance confirmed negotiating with international institutions to secure $1.5 billion in funding, which we will get next month.
The Egyptian currency has lost regarding half of its value once morest the dollar since March 2022, following the Ukrainian crisis revealed weaknesses in its economy.
A $3 billion loan approved by the International Monetary Fund in December has defaulted because of Egypt’s slow pace of selling state assets and a flexible exchange rate.
A Archyde.com poll showed, the day before yesterday, Tuesday, that the inflation rate in Egyptian cities is expected to rise to a new record in August, following breaking records in June and July, with the increase in tobacco prices and cultural and entertainment services.
The median forecast of 14 analysts who participated in the survey showed that annual urban consumer price inflation rose to 37.1 percent, following hitting an all-time high of 36.5 percent in July and 35.7 percent in June. The previous highest level was recorded in July 2017 and reached 32.95%.
Seeking to contain inflationary pressures and inflation expectations, the central bank raised the key overnight interest rate by 100 basis points on August 3, bringing the deposit yield rate to 19.25%. Since March 2022, the Bank has raised interest rates by 1,100 basis points.
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