Germany is making EUR 500 million ($566 million) in credit available to Iraq. The funds are not earmarked for any specific purpose, however German Chancellor Angela Merkel emphasized the need for investment in iraq’s infrastructure on Thursday after a meeting with Iraqi Prime Minister Haider al-Abadi.
“Germany is ready to do what it can . . . to stabilize Iraq in view of the big security challenges and economic challenges,” Merkel said, adding low oil prices are a major challenge for Iraq’s budget. “So today we have given Iraq credit of EUR 500 million for unspecified purposes,” she said. Following the meeting, Abadi told journalists that Iraq’s oil revenues have sunk to just 15 percent of their value two years ago. “This is a major decline and we therefore have great difficulties,” he said. [Reuters, 2/11/2016]
Egypt will allow a sharp devaluation of its currency in the first half of this year, according to a number of bankers and economists. The Egyptian pound is trading at 8.7 to the US dollar on the black market, compared to an official rate of 7.73. “We expect the central bank will let the pound depreciate to 8 (against the dollar) by end of March, if not sooner,” one senior Cairo banker said. Head of Equities at Cairo-based Beltone Financial Hany Genena said the CBE will make a “swift move towards an exchange rate regime.” The CBE’s decision to raise caps on monthly cash deposits for importers of essential goods can be seen as a “partial devaluation,” he said. “We expect devaluation to take place in the first half of this year, in a one-off move to an exchange rate of 8.5 pounds against the dollar,” economist at London-based Capital Economics Jason Tuvey said. “To solve the foreign currency shortage, Egypt needs two things: a different monetary policy and working to generate foreign exchange,” said former Finance Minister and World Bank economist Ahmed Galal. [Ahram Online, 2/10/2016]
Turkey’s current-account gap narrowed at a slower pace in December than in the previous two months when the impact of lower oil prices diminished toward the end of the year. The deficit shrank to $5.07 billion, compared to $6.66 billion a year earlier, a 24 percent annual drop. The deficit had narrowed at an annual rate of about 59 percent and 84 percent in November and October respectively, the central bank reported on Thursday. “After beginning their descent in 2014, oil prices somewhat plateaued early last year and they were not at a dramatically different level in December,” Chief Economist at Turkey’s Finansbank Inan Demir said. “The so-called base impact in energy prices is now becoming less supportive, which is the reason why the gap improved at a slower pace.” [Bloomberg, 2/11/2016]
Tunisia has made nearly half a billion dollars from the sale of assets confiscated from ousted president Zine El Abidine Ben Ali and his allies, Finance Minister Slim Chaker said Wednesday. “Since 2011, we made around 1.5 billion dinars [of which] around 1 billion dinars ($500 million) went into the state’s coffers,” Finance Minister Slim Chaker said. Chaker said the remaining 500 million dinars went to paying off Tunisia’s debts. Revenues from the sales have boosted the national budget and allowed the state to borrow less, he added, however the process has been slow. Only some assets have been sold off so far. “There were lots of cars we didn’t have the keys for, and that are still registered in the names of their previous owners,” he said. [AFP, 2/10/2016]
Also of interest
As oil profits fall, Gulf countries consider taxes | WSJ
Egypt to issue one-year $1 billion treasury bill | Reuters
Egypt’s CIB to raise up to $1 billion to fund growth | Reuters
Egypt’s CIB posts 26 percent jump in 2015 net profit | Reuters
Egypt’s Housing Ministry signs contracts worth $25 billion | Amwal Al Ghad
Head of Egypt’s Federation of Industries denies GM halt in production | AMAY (Arabic)
War and plunging oil prices send Iraq’s economy into crisis | AP
War and plunging oil prices send Iraq’s economy into crisis | AP
Iraq expects to load less Basra crude in March compared to February | Reuters
Central Bank of Libya reduces hard currency transfer limit for individuals | Libya Herald
Central Bank of Libya holds workshop with World Bank on Islamic finance | Libya Herald
Turkey to impose price ceiling to control rising meat prices | Hurriyet
Turkey to impose price ceiling to control rising meat prices | Hurriyet
Germany to make available 500 million euros in credit to Iraq
Germany is making EUR 500 million ($566 million) in credit available to Iraq. The funds are not earmarked for any specific purpose, however German Chancellor Angela Merkel emphasized the need for investment in iraq’s infrastructure on Thursday after a meeting with Iraqi Prime Minister Haider al-Abadi. “Germany is ready to do what it can . . . to stabilize Iraq in view of the big security challenges and economic challenges,” Merkel said, adding low oil prices are a major challenge for Iraq’s budget. “So today we have given Iraq credit of EUR 500 million for unspecified purposes,” she said. Following the meeting, Abadi told journalists that Iraq’s oil revenues have sunk to just 15 percent of their value two years ago. “This is a major decline and we therefore have great difficulties,” he said. [Reuters, 2/11/2016]
Egypt will allow a sharp devaluation of its currency in the first half of this year, according to a number of bankers and economists. The Egyptian pound is trading at 8.7 to the US dollar on the black market, compared to an official rate of 7.73. “We expect the central bank will let the pound depreciate to 8 (against the dollar) by end of March, if not sooner,” one senior Cairo banker said. Head of Equities at Cairo-based Beltone Financial Hany Genena said the CBE will make a “swift move towards an exchange rate regime.” The CBE’s decision to raise caps on monthly cash deposits for importers of essential goods can be seen as a “partial devaluation,” he said. “We expect devaluation to take place in the first half of this year, in a one-off move to an exchange rate of 8.5 pounds against the dollar,” economist at London-based Capital Economics Jason Tuvey said. “To solve the foreign currency shortage, Egypt needs two things: a different monetary policy and working to generate foreign exchange,” said former Finance Minister and World Bank economist Ahmed Galal. [Ahram Online, 2/10/2016]
Turkey’s current-account gap narrowed at a slower pace in December than in the previous two months when the impact of lower oil prices diminished toward the end of the year. The deficit shrank to $5.07 billion, compared to $6.66 billion a year earlier, a 24 percent annual drop. The deficit had narrowed at an annual rate of about 59 percent and 84 percent in November and October respectively, the central bank reported on Thursday. “After beginning their descent in 2014, oil prices somewhat plateaued early last year and they were not at a dramatically different level in December,” Chief Economist at Turkey’s Finansbank Inan Demir said. “The so-called base impact in energy prices is now becoming less supportive, which is the reason why the gap improved at a slower pace.” [Bloomberg, 2/11/2016]
Tunisia has made nearly half a billion dollars from the sale of assets confiscated from ousted president Zine El Abidine Ben Ali and his allies, Finance Minister Slim Chaker said Wednesday. “Since 2011, we made around 1.5 billion dinars [of which] around 1 billion dinars ($500 million) went into the state’s coffers,” Finance Minister Slim Chaker said. Chaker said the remaining 500 million dinars went to paying off Tunisia’s debts. Revenues from the sales have boosted the national budget and allowed the state to borrow less, he added, however the process has been slow. Only some assets have been sold off so far. “There were lots of cars we didn’t have the keys for, and that are still registered in the names of their previous owners,” he said. [AFP, 2/10/2016]
As oil profits fall, Gulf countries consider taxes | WSJ
Egypt to issue one-year $1 billion treasury bill | Reuters
Egypt’s CIB to raise up to $1 billion to fund growth | Reuters
Egypt’s CIB posts 26 percent jump in 2015 net profit| Reuters
Egypt’s Housing Ministry signs contracts worth $25 billion | Amwal Al Ghad
Head of Egypt’s Federation of Industries denies GM halt in production | AMAY (Arabic)
War and plunging oil prices send Iraq’s economy into crisis | AP
Iraq expects to load less Basra crude in March compared to February | Reuters
Central Bank of Libya reduces hard currency transfer limit for individuals | Libya Herald
Central Bank of Libya holds workshop with World Bank on Islamic finance | Libya Herald
Turkey to impose price ceiling to control rising meat prices | Hurriyet
Germany is making EUR 500 million ($566 million) in credit available to Iraq. The funds are not earmarked for any specific purpose, however German Chancellor Angela Merkel emphasized the need for investment in iraq’s infrastructure on Thursday after a meeting with Iraqi Prime Minister Haider al-Abadi. “Germany is ready to do what it can . . . to stabilize Iraq in view of the big security challenges and economic challenges,” Merkel said, adding low oil prices are a major challenge for Iraq’s budget. “So today we have given Iraq credit of EUR 500 million for unspecified purposes,” she said. Following the meeting, Abadi told journalists that Iraq’s oil revenues have sunk to just 15 percent of their value two years ago. “This is a major decline and we therefore have great difficulties,” he said. [Reuters, 2/11/2016]
Economists say to brace for a devaluation of the Egyptian pound
Egypt will allow a sharp devaluation of its currency in the first half of this year, according to a number of bankers and economists. The Egyptian pound is trading at 8.7 to the US dollar on the black market, compared to an official rate of 7.73. “We expect the central bank will let the pound depreciate to 8 (against the dollar) by end of March, if not sooner,” one senior Cairo banker said. Head of Equities at Cairo-based Beltone Financial Hany Genena said the CBE will make a “swift move towards an exchange rate regime.” The CBE’s decision to raise caps on monthly cash deposits for importers of essential goods can be seen as a “partial devaluation,” he said. “We expect devaluation to take place in the first half of this year, in a one-off move to an exchange rate of 8.5 pounds against the dollar,” economist at London-based Capital Economics Jason Tuvey said. “To solve the foreign currency shortage, Egypt needs two things: a different monetary policy and working to generate foreign exchange,” said former Finance Minister and World Bank economist Ahmed Galal. [Ahram Online, 2/10/2016]
Turkey’s current-account deficit narrows at slower pace on oil
Turkey’s current-account gap narrowed at a slower pace in December than in the previous two months when the impact of lower oil prices diminished toward the end of the year. The deficit shrank to $5.07 billion, compared to $6.66 billion a year earlier, a 24 percent annual drop. The deficit had narrowed at an annual rate of about 59 percent and 84 percent in November and October respectively, the central bank reported on Thursday. “After beginning their descent in 2014, oil prices somewhat plateaued early last year and they were not at a dramatically different level in December,” Chief Economist at Turkey’s Finansbank Inan Demir said. “The so-called base impact in energy prices is now becoming less supportive, which is the reason why the gap improved at a slower pace.” [Bloomberg, 2/11/2016]
Tunisia makes $500 million from ousted president Ben Ali’s assets
Tunisia has made nearly half a billion dollars from the sale of assets confiscated from ousted president Zine El Abidine Ben Ali and his allies, Finance Minister Slim Chaker said Wednesday. “Since 2011, we made around 1.5 billion dinars [of which] around 1 billion dinars ($500 million) went into the state’s coffers,” Finance Minister Slim Chaker said. Chaker said the remaining 500 million dinars went to paying off Tunisia’s debts. Revenues from the sales have boosted the national budget and allowed the state to borrow less, he added, however the process has been slow. Only some assets have been sold off so far. “There were lots of cars we didn’t have the keys for, and that are still registered in the names of their previous owners,” he said. [AFP, 2/10/2016]
Also of interest
As oil profits fall, Gulf countries consider taxes | WSJ
Egypt to issue one-year $1 billion treasury bill | Reuters
Egypt’s CIB to raise up to $1 billion to fund growth | Reuters
Egypt’s CIB posts 26 percent jump in 2015 net profit| Reuters
Egypt’s Housing Ministry signs contracts worth $25 billion | Amwal Al Ghad
Head of Egypt’s Federation of Industries denies GM halt in production | AMAY (Arabic)
War and plunging oil prices send Iraq’s economy into crisis | AP
Iraq expects to load less Basra crude in March compared to February | Reuters
Central Bank of Libya reduces hard currency transfer limit for individuals | Libya Herald
Central Bank of Libya holds workshop with World Bank on Islamic finance | Libya Herald
Turkey to impose price ceiling to control rising meat prices | Hurriyet