EXCLUSIVE- And speaking of FX stability: The next state budget assumes an average exchange rate of EGP 17.25 to the greenback, Vice Minister of Finance Mohamed Maait tells us. The proposed budget is currently with the House of Representatives for discussion. Our refresher on the proposed budget is here.

Finance Ministry not planning to amend budget to reflect increase in global oil prices: The Finance Ministry is unlikely to amend the FY2018-19 state budget to account for a recent spike in global oil prices, which have surged beyond the estimated USD 67 per bbl to around USD 75 per bbl, Maait told us. While higher oil prices could reflect negatively on Egypt’s budget deficit estimates of 8.4% in FY2018-19, Maait said that “there is no need for amendments as long as the changes [to oil prices] remain within the estimated range set by the budget.” He explained that the state found it unnecessary make changes the budget this fiscal year, despite the consecutive increases to crude oil prices. Higher oil prices have, however, forced the Finance Ministry to update its budget deficit forecasts for the current fiscal year to 9.5-9.7% of GDP, up from 9.4% and an initial rate of 9%. Saudi Arabia has said that it was looking to see oil prices rise to as much as USD 100 per bbl this year.

House divided over budget? This comes as Al Shorouk reports of a division between MPs over the FY2018-19 budget after a week of deliberation. While some representatives view it as Egypt’s most ambitious budget to date, others have complained about a lack of coordination between the various ministries in setting out their goals and bills for the new year, the newspaper says.