Ibrahim Ashmawy appointed chairman of forthcoming commodity exchange
Egypt’s new commodity exchange just got a new chairman as we inch closer to launch: Internal Trade Development Authority Chairman Ibrahim Ashmawy has been selected to lead Egycomex, the new commodity exchange, according to Hapi Journal. Ashmawy told the newspaper that the structural and administrative frameworks for the exchange are ready and that a draft law governing the exchange has been submitted to the prime minister. Supply Minister Aly El Moselhy was supposed to have revealed the timeline for the launch last Thursday, along with details on the exchange. Lingering questions that remain include:
- When trading will begin: It is unclear yet whether trading in the exchange will start in September as sources revealed to the local press back in January.
- Ownership of the exchange: 49% of the exchange will be held by a combination of private, state and quasi-state entities, according to past statements by Moselhy. The EGX has staked its claim on 30% of the exchange, according to EGX Chairman Mohamed Farid.
- What commodities will be traded: The exchange was expected to initially trade in six commodities: wheat, rice, corn, potatoes, onions, and oranges.
- Relation to the futures exchange: Will the commodities traded on the exchange underpin the prices on the upcoming futures exchange.