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Monday, 21 June 2021

More support in Europe for a digital EUR

Plans for a digital EUR has got another endorsement from a European Central Bank (ECB) official: Speaking to the Financial Times, ECB executive board member Fabio Panetta moved to assuage concerns about consumer privacy, claiming that a centrally-regulated digital EUR would safeguard the bloc from threats posed by other cryptocurrencies.

A decision may be imminent on whether to launch a digital EUR by 2025: The currency may already have the support of ECB chief Chrstine Lagarde, who said earlier this year (watch, runtime: 3:35) that the central bank could go ahead with a launch by the middle of the decade. Policymakers will decide in the middle of the year on whether to go ahead with the project, she told Bloomberg, without providing more detail on when a decision could be made.

China will become the first major power to issue a digital currency, forging ahead with its plans to roll out a digital RMB. The Chinese government has conducted trials in several cities, and last week introduced thousands of ATMs in Beijing allowing people to exchange hard currency for its digital equivalent. After first voicing skepticism, US policymakers are now working on a prototype greenback while the Bank of England is holding consultations on the creation of a digital


It’s not just oil prices that are rebounding: Natural gas prices are at their highest going into the summer since 2017 as post-lockdown energy demand surges, the Wall Street Journal reports. Natgas futures ended Friday at USD 3.215 per mmbtu, up 96% from a year ago and the highest summer price in four years. Prices are expected to rise further later this year as winter approaches in the Northern Hemisphere.

This is still a lot lower than where Egypt would like them: Egypt requires natural gas prices to be between USD 5.00-5.50 / mmbtu to break even.

Saudi Arabia is going to create one of the world’s largest pension funds: Saudi Arabia will merge two state-run pension and ins. funds into a new entity with more than USD 250 bn in AUM as part of the kingdom’s plans to diversify away from oil and grow its assets to over USD 1 tn by 2025, a senior official tells Bloomberg. The government wants the fund to be one of the top 10 pension funds in the world, and will be close to the tenth-largest: the New York State Common Retirement which holds USD 255 bn in assets.

Down

EGX30

9,798

-0.7% (YTD: -9.7%)

None

USD (CBE)

Buy 15.60

Sell 15.70

None

USD at CIB

Buy 15.60

Sell 15.70

None

Interest rates CBE

8.25% deposit

9.25% lending

Down

Tadawul

10,790

-0.8% (YTD: +24.2%)

None

ADX

6,648

-% (YTD: +31.8%)

Down

DFM

2,850

-0.4% (YTD: +14.4%)

Down

S&P 500

4,166

-1.3% (YTD: +10.9%)

Down

FTSE 100

7,017

-1.9% (YTD: +8.6%)

Up

Brent crude

USD 73.51

+0.6%

Down

Natural gas (Nymex)

USD 3.22

-1.2%

Down

Gold

USD 1,769.00

-0.3%

Down

BTC

USD 35,583

-1.0% (as of midnight)

THE CLOSING BELL-

The EGX30 fell 0.7% at today’s close on turnover of EGP 1.35 bn (4% above the 90-day average). Foreign investors were net sellers. The index is down 9.7% YTD.

In the green: Ezz Steel (+4.0%), Qalaa Holdings (+2.0%) and Oriental Weavers (+1.5%).

In the red: Eastern Company (-3.6%), Fawry (-2.9%) and Orascom Investment Holding (-2.4%).

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

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