Dear followers everywhere, welcome to a new analysis of the most important events and reports presented by the Banker Research Unit around the clock today, Saturday, November 9, 2024.
Banker platforms presented a number of important reports today, starting with the most important event in Egypt, which is related to the external debt file
The report said that over the past months, Egypt has undertaken very many economic reforms, and the beginning of the reforms was last March, when the government signed the tourism investment deal in Ras Al-Hikma, which included direct investments amounting to $35 billion, as direct money entered the treasury of the Central Bank, other than the expected returns from The project, which will reach 150 billion dollars in the coming years when the project begins to operate.
The report explained that the Ras al-Hikma deal and the increase in dollar flows enabled the Egyptian government to meet import requests and also pay a large portion of the debt interest that was due to be paid in 2024, which helped Egypt fulfill the obligations it had to the International Monetary Fund.
Banker said that Egypt will repay dollar bonds tomorrow, Sunday, representing debt maturities worth $1.32 billion. This is part of the external debt currently owed by Egypt, which declined last June to $152.9 billion.
The next report presented by Banker platforms was regarding the consequences of the US Federal Reserve’s interest rate reduction on global markets
The report explained that when the Fed reduces interest rates, the return on bonds and investments in dollars decreases, and thus investors look for other currencies or different assets that provide a higher return, which could lead to a decline in the value of the dollar against other currencies, especially in emerging markets.
The report said that at the same time, the decline of the dollar affects the prices of basic commodities because many of them, such as gold and oil, are priced in dollars. Therefore, the weakness of the dollar supports the prices of these goods because they are cheaper for buyers in other currencies.
The report indicated the impact of the decision on the gold market and said that gold is always a safe haven for investors in times of instability when the Federal Reserve lowers the interest rate. This encourages people to buy gold as it is an investment that maintains its value away from the fluctuations of the dollar. I mean, we could see gold prices increasing over time, especially if the global trend favors lowering interest rates and increasing inflation. Usually, when the interest rate decreases, investors look for investments that maintain their value, and here comes the role of gold as a safe asset.
Banker platforms presented a special report on what will happen in Egypt on November 21
The report explained that first of all, we must know that the US Federal Reserve, which is considered the largest central bank in the world, reduced interest rates twice this year with the aim of stimulating the economy and reducing inflationary pressures.
This step prepares the atmosphere for reducing interest rates in many banks around the world, including central banks in emerging markets, which always look at the Fed’s decisions as an indicator.
Banker explained that for the Central Bank of Egypt, it is also one of the banks that is expected to reduce the interest rate in the coming period as part of a trend to support the economy and encourage investment, especially after inflation has decreased significantly in the last few months.
Regarding the scenarios expected at the November 21 meeting, the report said that there are several important factors that the central bank takes into account when it decides to reduce interest rates, the first of which, of course, is inflation and then dollar flows.
Banker Research Unit submitted a special report today about a sea monster moving to Egypt
The report said that Egypt is now racing against time to return to being a regional center in the energy, oil and gas sector, and at the same time it wants to compensate for the shortfall in production last summer and is causing many crises, the first of which is the load shedding crisis and then the depletion of the dollar to import huge shipments of gas, and that is why the Egyptian government is doing this. Dozens of areas have been offered for oil and gas exploration throughout the republic.
The report pointed out that the offshore drilling company Stena Drilling announced that the drilling ship “Stena Forth” sailed to Egyptian waters on a special mission with the American company Chevron to drill and explore for oil and gas in the largely unexplored areas of the western Mediterranean off the coast of Egypt.
According to information, Chevron hired the drilling ship “Stena Forth” to drill the “Khanjar-1” well in the North Dabaa region, as the first exploration operation in the Egyptian western Mediterranean regions.
Drilling activities are scheduled to begin in late November, and based on tracking data, the “Stena Forth” drilling ship arrived at the North El-Dabaa square in the western Mediterranean region of Egypt to drill the “Khanjar-1” well, as the first well in the square. According to the information, the international company responded, expecting The discovery of large oil and gas fields in the region.
