Egypt has cleared a multibillion-dollar backlog of foreign-currency requests from importers and foreign companies since floating the pound in November, a central bank official said, the latest sign that the economy is recovering from a paralysing dollar shortage.
The banking system is also meeting new foreign-currency requests without delay, the official said on condition of anonymity. The bank shared previously unpublished data with Bloomberg, showing that US$1.5 billion in pending requests from multinationals to transfer to mother companies or pay suppliers have been cleared. Some $552 million has been made available to foreign companies seeking to remit dividends.
The figures add to growing evidence that Egypt’s external finances have improved since abandoning most currency controls in November as part of a sweeping economic programme that helped clinch a $12bn IMF loan. Central bank reserves have almost doubled to $36bn in July. International investors have poured billions into Egyptian local-currency debt.
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Foreign companies and importers had struggled to obtain dollars since the 2011 uprising against the president Hosni Mubarak, which drove away foreign investors and tourists. The currency crunch had become so acute that companies were finding it difficult secure letters of credit, leaving some $800m of shipments stuck in the country’s ports. Those have now also been cleared.
“The figures confirm the economy is recovering and is increasingly able to generate more of its FX needs,” said Reham ElDesoki, a senior economist at the investment bank Arqaam Capital. Increased transparency from the central bank, in line with its commitments to the IMF, was welcome and would help to reassure investors, she said.
The central bank official said the increased availability of foreign currency in the banking system had boosted trading on the interbank system, as some banks were now selling their surplus dollars through it. An outstanding $2.1bn in requests made by importers and other businesses seeking to settle temporary overdrafts taken out before the flotation have also been cleared.
In total, $49bn of trade-financing transactions were executed between the flotation of the pound and August, the official said.
The pound has lost half its value since it was floated, and now trades at about 17.6 per dollar. The weaker currency, along with subsidy cuts, the introduction of value-added taxation and a sharp increase in import duties on hundreds of goods, have propelled inflation to more than 30 per cent - the highest level in more than a decade.
The state-run oil company Egyptian General Petroleum Corporation received foreign-currency allocations of $6bn between November and July for new trade deals, the official said, as well as $2bn to pay part of its arrears to international oil companies built up during the dollar crunch. The company’s outstanding debt is not counted as part of the foreign-currency backlog in the banking system.
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
T20 World Cup Qualifier, Muscat
UAE FIXTURES
Friday February 18: v Ireland
Saturday February 19: v Germany
Monday February 21: v Philippines
Tuesday February 22: semi-finals
Thursday February 24: final
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
if you go
The flights
Air Astana flies direct from Dubai to Almaty from Dh2,440 per person return, and to Astana (via Almaty) from Dh2,930 return, both including taxes.
The hotels
Rooms at the Ritz-Carlton Almaty cost from Dh1,944 per night including taxes; and in Astana the new Ritz-Carlton Astana (www.marriott) costs from Dh1,325; alternatively, the new St Regis Astana costs from Dh1,458 per night including taxes.
When to visit
March-May and September-November
Visas
Citizens of many countries, including the UAE do not need a visa to enter Kazakhstan for up to 30 days. Contact the nearest Kazakhstan embassy or consulate.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
The Dark Blue Winter Overcoat & Other Stories From the North
Edited and Introduced by Sjón and Ted Hodgkinson
Pushkin Press
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
