The Central Bank of Egypt (CBE) raised its key interest rates on Thursday by 150 basis points to curb inflationary pressures. The bank’s Monetary Policy Committee (MPC) raised the overnight deposit rate to 10.75 percent from 9.25 percent and the overnight lending rate to 11.75 percent from 10.25 percent.
The CBE devalued the pound on Monday to 8.85 pounds per dollar from 7.73 pounds. Two days later the bank strengthened it slightly to 8.78 per dollar as it adopted a more flexible exchange rate policy. Most experts had predicted the MPC would hike rates to defend the pound following the devaluation, with forecasts ranging from a 50 to 100 basis point hike. “The Monetary Policy Committee judges that a rate hike is warranted to anchor inflation expectations,” the CBE said. “The central bank’s monetary policy will be geared towards maintaining price stability by avoiding double digit inflation rates over the medium-term to maintain real incomes.” [Reuters, Bloomberg, Ahram Online, 3/17/2016]
Iraq’s central government has stopped oil exports through the Kurdish region to pressure the local authorities to resume talks on an oil revenue sharing agreement, Iraqi Oil Minister Adel Abdul Mahdi said. Iraq’s state-run North Oil Company stopped pumping crude produced at fields it operates in the Kirkuk area through a pipeline to Turkey. North Oil normally exports 150,000 barrels a day. The pipeline also carries oil produced in the Kurdish region and sold independently from the Iraqi central government. [Reuters, 3/17/2016]
Saudi Aramco has launched a tender to build gas treatment units at Uthmaniya, in a project expected to cost upwards of $500 million. Saudi Arabia is struggling to keep up with domestic demand for gas. The aim of the project is to recover ethane, propane, and other natural gas liquids (NGL) from 1.4 billion standard cubic feet per day (scfd) of sales gas. The ethane recovery project will strip the residual ethane from the processed fuel gas stream and make it available as a high-value feedstock for the petrochemical industry instead of burning it with the fuel gas, said former Aramco executive Sadad al-Husseini. The project is scheduled to be completed in August 2019, sources said, adding that the project is estimated to cost anywhere between $500 million and $1 billion. [Reuters, 3/17/2016]
Tunisia will hold a national dialogue on employment on March 29, Minister of Vocational Training and Employment Zied Laadhari said on Thursday. The dialogue will feature the participation of UN Secretary General of the United Nations Ban Ki-moon. Laadhari’s comments come after three days of preparations for the dialogue. The Office of the Prime Minister, the Tunisian General Labor Union (UGTT), and the Tunisian Confederation of Industry, Trade and Handicrafts (UTICA) took part in the preparations. A report including proposals for solutions to unemployment is scheduled to be presented in the next week. [TAP, 3/17/2016]
Also of interest
Saudi minister prepares for a world after fossil fuels | Bloomberg
Saudi Arabia to join oil producer meeting in Doha in April | Bloomberg
Minister says UAE outlook remains positive | Gulf News
Ministry says Egypt’s wheat reserves enough until beginning of July | Ahram Online
Egypt’s one-year, six-month T-bill yields rise as central bank raises key rates | Reuters
Moody’s expresses support for Egypt’s pound devaluation | DNE
Tunisian ministers meet with head of European tourist group | TAP
Erdogan aide says Turkish central bank may cut rates next week | Reuters
Egypt central bank raises key interest rates
The Central Bank of Egypt (CBE) raised its key interest rates on Thursday by 150 basis points to curb inflationary pressures. The bank’s Monetary Policy Committee (MPC) raised the overnight deposit rate to 10.75 percent from 9.25 percent and the overnight lending rate to 11.75 percent from 10.25 percent. The CBE devalued the pound on Monday to 8.85 pounds per dollar from 7.73 pounds. Two days later the bank strengthened it slightly to 8.78 per dollar as it adopted a more flexible exchange rate policy. Most experts had predicted the MPC would hike rates to defend the pound following the devaluation, with forecasts ranging from a 50 to 100 basis point hike. “The Monetary Policy Committee judges that a rate hike is warranted to anchor inflation expectations,” the CBE said. “The central bank’s monetary policy will be geared towards maintaining price stability by avoiding double digit inflation rates over the medium-term to maintain real incomes.” [Reuters, Bloomberg, Ahram Online, 3/17/2016]
Iraq halts exports through pipeline to pressure Kurds
Iraq’s central government has stopped oil exports through the Kurdish region to pressure the local authorities to resume talks on an oil revenue sharing agreement, Iraqi Oil Minister Adel Abdul Mahdi said. Iraq’s state-run North Oil Company stopped pumping crude produced at fields it operates in the Kirkuk area through a pipeline to Turkey. North Oil normally exports 150,000 barrels a day. The pipeline also carries oil produced in the Kurdish region and sold independently from the Iraqi central government. [Reuters, 3/17/2016]
Saudi Aramco has launches tender to build gas treatment units
Saudi Aramco has launched a tender to build gas treatment units at Uthmaniya, in a project expected to cost upwards of $500 million. Saudi Arabia is struggling to keep up with domestic demand for gas. The aim of the project is to recover ethane, propane, and other natural gas liquids (NGL) from 1.4 billion standard cubic feet per day (scfd) of sales gas. The ethane recovery project will strip the residual ethane from the processed fuel gas stream and make it available as a high-value feedstock for the petrochemical industry instead of burning it with the fuel gas, said former Aramco executive Sadad al-Husseini. The project is scheduled to be completed in August 2019, sources said, adding that the project is estimated to cost anywhere between $500 million and $1 billion. [Reuters, 3/17/2016]
Tunisia to hold national dialogue on employment
Tunisia will hold a national dialogue on employment on March 29, Minister of Vocational Training and Employment Zied Laadhari said on Thursday. The dialogue will feature the participation of UN Secretary General of the United Nations Ban Ki-moon. Laadhari’s comments come after three days of preparations for the dialogue. The Office of the Prime Minister, the Tunisian General Labor Union (UGTT), and the Tunisian Confederation of Industry, Trade and Handicrafts (UTICA) took part in the preparations. A report including proposals for solutions to unemployment is scheduled to be presented in the next week. [TAP, 3/17/2016]
Also of interest
Saudi minister prepares for a world after fossil fuels | Bloomberg
Saudi Arabia to join oil producer meeting in Doha in April | Bloomberg
Minister says UAE outlook remains positive | Gulf News
Ministry says Egypt’s wheat reserves enough until beginning of July | Ahram Online
Egypt’s one-year, six-month T-bill yields rise as central bank raises key rates | Reuters
Moody’s expresses support for Egypt’s pound devaluation | DNE
Jihadists launch rocket attack on gas plant in Algeria | AFP, WSJ
Tunisian ministers meet with head of European tourist group | TAP
Erdogan aide says Turkish central bank may cut rates next week | Reuters