2023-07-12 13:39:00
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Investing.com – Egyptian Prime Minister Mostafa Madbouly announced during a press conference held on Tuesday that the government has concluded contracts to sell government assets to private companies worth $1.9 billion so far as part of the government’s offering plan. Pointing out that it is targeting an additional billion dollars through exiting from new companies.
At the same time, the Egyptian Minister of Planning, Hala Al-Saeed, said during the same press conference that the government sold minority stakes in 3 companies in the pre-issue fund, with stakes ranging from 25 percent to 30 percent, at a value of $800 million to the Abu Dhabi Development Holding Company. Emirates ADQ.
These developments in the file of the government’s offering program indicate a possible decline in the exchange rates of the dollar in the parallel market, with new declines in prices during the coming period.
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Gold dip
On the impact of this news, some experts suggest new declines in gold in Egypt, as the offering program, the details of which were announced yesterday, will result in declines in black market dollars, which will be reflected in the price of gold, as pricing is sometimes linked to the dollar price in the market. parallel.
Farag Atta, one of the gold dealers in the goldsmiths’ area in Cairo, said that there has been a state of confusion in the gold market since the Egyptian prime minister’s talk regarding increasing dollar revenues.
Atta expected, in press statements, that the coming period will witness significant declines in prices, in line with international prices.
He pointed out that major traders and suppliers of gold in Egypt link pricing to the exchange rates of the dollar in the parallel market, and when dollar prices decline in the black market, this will be directly reflected in gold prices, which will surely decline until they reach a fair price or are in line with gold prices. globally.
Today, 24 karat gold records 2486 pounds per gram, while 21 karat records regarding 2175 pounds per gram. As for 18 karat, it records 1864 pounds per gram. While the gold pound reached 17,400 pounds.
black market dollars
This progress in the issue of selling state-owned assets is expected to contribute to reassuring investors, in addition to breaking the stalemate in negotiations with the International Monetary Fund, as one of the conditions of the financing package that was agreed upon between the Egyptian government and the fund is the state’s exit from economic activity.
It is also likely that the black market will witness remarkable movements during the next few days on the impact of this news, as the progress in the government offering program will provide the necessary dollar liquidity that will enable Egypt to bridge the gap between the official and parallel prices, and then bypass the first review of the International Monetary Fund, which is to be held. Next September, which motivates investors to pump more investments into the Egyptian economy, and thus these developments may push the dollar in the parallel market to decline due to these positive news.
In general, the dollar declines on the black market whenever there is reassuring news regarding the state of the Egyptian economy, or the issuance of expectations from international institutions and banks stating that the pound will not decline in the near future. And vice versa, the dollar rises whenever the news is negative and not reassuring.
The official exchange rate has remained stable at regarding 30.90 pounds per dollar for months, while the Egyptian currency has declined on the black market to levels ranging from 37 to 39 pounds per dollar over the past few days.
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