Dear followers everywhere, welcome to a new analysis of the most important reports presented by the Banker Research Unit around the clock today, Wednesday, November 20, 2024.
The truth is that Banker platforms presented a large number of important reports today regarding the Egyptian economy, which has begun to recover according to many international indicators.
We begin with the most important event today, which is the report of the international credit rating agency Moody’s, which expected economic growth rates in Egypt to rise to the level of 5% by 2026. This is a large number in light of the difficult circumstances that the region has gone through and is going through and has greatly affected Egypt.
The report pointed out that the agency explained its positive expectations as stability in economic and financing conditions and support for credit quality for emerging market governments, companies and institutions during 2025. It said that growth in gross domestic product in emerging markets and Egypt, including them, will be stable in general, with inflation rates slowing and interest rates beginning to be reduced.
The agency explained in its latest report that Egypt will benefit from lower credit spreads and higher bond issuance due to the increased appetite of investors to invest in emerging market bonds, including the Egyptian market.
The report pointed out that Moody’s confirmed a decrease in the average debt-to-GDP ratio for emerging market governments during the coming year because lower interest rates and stronger revenues will help reduce the fiscal deficit of countries such as Egypt.
The report explained the importance of the reports of these international classification agencies. They are very important because they will be like a guide for investors who look at the classifications of the international classification agencies so that they know that their reports are important before entering into any market. The recent expectations of the classification agencies for Egypt are positive and very important and will open the way for new investments in the Egyptian market, which will excel. With very large attraction factors, such as the decline in currency prices, and at the same time the diversity of economic activities and the availability of a strong and modern infrastructure.
Banker pointed to Fitch’s recent report, which raised its rating for four Egyptian banks, namely the National Bank of Egypt, Banque Misr, Banque du Caire, and Commercial International Bank, to a positive future outlook from stable. The same agency raised Egypt’s credit rating, days ago and for the first time in 2019, in a positive indicator of improving Egyptian economic indicators. After the March 6 reform measures and unification of the exchange rate.
The next report presented by Banker platforms was regarding the state of anticipation and caution ahead of the upcoming decision of the Central Bank of Egypt
The report said that there is a state of anticipation in the market currently at its highest levels, and all attention is directed to the meeting of the Monetary Policy Committee, and the reason is simple. The decision that will be issued by the committee tomorrow may change the shape of the economy in Egypt in the coming period.
Regarding the expectations of the Monetary Policy Committee’s decision tomorrow, Banker explained that inflation in October was lower than expected, and this encourages caution before any new decision, but, at the same time, the Central Bank cannot risk it if it finds that inflation is still a threat to economic stability… There is also an important factor. Very much, and this is the impact of the decision on foreign investment. If the interest rate rises further, it may attract new investments in debt instruments, but in return, it will increase the cost of financing for the government and companies.
The report concluded that the entire market is in a “wait and see” mode, and the Central Bank’s decision is undesirable. Not only will it affect large investors, it will affect everything, from the starting price of the gold that we buy to save up to the prices of the goods and services that we deal with every day. All people are asking: Will the Central Bank have the audacity to take risks, or will it choose the safe path?
Today, the Banker Research Unit presented a different and special report on the success of the Egyptian economic reform policy to the point that there are important countries in the region that walked the same path with the same steps in order to correct their economic path.
The report said that, when the government announced the economic reform plan with the International Monetary Fund, at that time, incitement platforms came out saying that the government was selling the country and its livestock behind the fund that would sink the country, but all international forecasts and global economic reports from the largest financial institutions in the world confirmed that the Egyptian economy was recovering strongly and that It will be one of the largest economies in the region in the near future in terms of economic growth rates and crisis recovery.
Banker explained that Turkey, which is an advanced country in many matters and has large exports, exports, for example, approximately 200 billion dollars annually. However, it is economically stable and does not suffer from external crises like Egypt. It decided to follow the same steps and procedures as the Egyptian government in economic reform and, for example, reduced the value of our currency to about 40. % over the past months in order to attract more investments and at the same time control inflation, and no one appeared in Turkey and no one wrote that Floating the lira will harm the national economy, and the government is a failure, for example. On the contrary, the media there sees it as an important step to attract billions of dollars in investments.
The report pointed out that Turkey also decided in recent hours that it is offering a large number of state-owned companies for sale in order to reduce costs and expand the scope for the private sector to operate and develop these companies, and no one came out and said that Erdogan is selling the country’s assets to Arab funds and the private sector, on the contrary. Businessmen there very much welcomed the step and said It will benefit the Turkish economy, and although this is what Egypt did before Turkey, unfortunately we have a lot of things said, whether through ignorance or through Deliberate incitement against the state, even though these are necessary economic decisions, and the whole world has relied for a long time on the private sector, whether national or foreign.
Banker explained that what happened in Turkey is an indirect certificate of success for the Egyptian government and confirms that Egypt is on the right path to economic launch and development, and that what it has done in the files of foreign investment, localization of industry, and increasing the volume of trade to reach appropriate export numbers and according to the capabilities of the Egyptian state.
The last report presented by Banker Platforms was regarding transforming Egypt into a citadel of the gold and jewelry industry in the region
The report explained that in recent years, the Egyptian government took a decision to allocate a city to gold near the New Administrative Capital, which includes an industry school, modern-style shops and factories, and this will certainly turn Egypt into a castle for the jewelry industry and an international trade area for the manufacture and trade of the yellow metal.
The report highlighted Egypt’s organization of the “Nebo 2024” exhibition for gold and jewelry, and the next session of the exhibition will witness wide participation from international exhibitors, and this confirms the interest of these companies in the Egyptian market. This exhibition also aims to transform Egypt into an international trade zone for the manufacture and trade of gold after the responsible authorities allocate The city of gold, near the administrative capital, is an international center for industry.
The report pointed out that there are important countries in the gold industry that will participate in the exhibition, such as Turkey, the Emirates, Italy, India, and China. These countries have witnessed a major boom in recent years in the gold industry and trade, and are considered an international center for this trade. That is why the Egyptian government intends to follow the same path in order to transform Egypt is a castle for the yellow metal industry
We can also say that the presence of companies from these countries at the exhibition will enhance the popularity of the Egyptian gold industry, and will help Egyptian companies to be present in these countries and shift to exporting.
Banker pointed out that the number of companies participating in the exhibition this year will reach 100 companies, in addition to 50 Egyptian companies, and that the presence of international companies helps Egyptian companies to conclude commercial deals to promote their products, especially the Pharaonic ones, which we seek because they have an international character, and all of this will certainly enhance export operations and add For the industry, it will also contribute to its expansion so that it becomes an important part of Egyptian export operations.
