Egypt could hedge against strategic commodity prices in FY2019-20
EXCLUSIVE- Egypt is mulling whether to hedge against rising prices of strategic commodities starting July, a senior government official told Enterprise. The government in talks with international banks to hedge against volatility in the prices of strategic imports including petroleum and wheat, starting from the coming fiscal year. Exact plans will be sent to the House of Representatives on 31 March to include them in the FY2019-20 budget, the official said, if the hedging plan ultimately gets the green light. The move would aim to ensure Egypt meets its budget deficit target next year. The official added that a number of international banks have already approached the government with offers, but did not name them. Last month, the government pulled back from fuel hedging contracts it had been exploring with two banks; the move came as crude prices moved lower than annual budget projections.