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Thursday, 19 August 2021

Crypto businesses stockpile cash in anticipation of regulatory scrutiny

Crypto businesses are preparing for the regulatory axe to fall: Coinbase has stockpiled as much as USD 4 bn in reserves in its first months as a public company on the eve of closer regulatory crypto scrutiny, the Wall Street Journal reports. Buoyed by strong earnings of USD 1.61 bn in 2Q2021, compared with USD 32 mn in the preceding year, Coinbase’s cash balance amounted to USD 4.36 as of 30 June, about 4x higher than at the end of 2020, thanks to price volatility during the quarter that buttressed the company’s trading business. “We want to ensure that we maintain those cash reserves so that we can continue to invest and continue to grow our products and services in the event that we go into a crypto winter,” CFO Alesia Haas said.

Syria has suspended imports of 20 commodities and raw materials for six months in a move aimed at saving its declining foreign reserves for wheat purchases, Bloomberg reports. The list includes metal pipes and ceramics. The decision highlights the strain of rising crop prices on global buyers, especially for developing nations.

Up

EGX30

10907.96

-0.2% (YTD: +0.6%)

None

USD (CBE)

Buy 15.65

Sell 15.75

None

USD at CIB

Buy 15.65

Sell 15.75

None

Interest rates CBE

8.25% deposit

9.25% lending

Down

Tadawul

11,344.94

-0.42% (YTD: +30.56%)

Down

ADX

7,694.59

-0.46% (YTD: +52.51%)

Up

DFM

2,862.01

+0.87% (YTD: +14.85%)

Down

S&P 500

4,400.27

-1.07% (YTD: +17.15%)

Down

FTSE 100

7,169.32

-0.16% (YTD: +10.97%)

Down

Brent crude

USD 67.51

-2.20%

Up

Natural gas (Nymex)

USD 3.85

+0.39%

Down

Gold

USD 1,784.40

-0.19%

Down

BTC

USD 44,683.33

-0.44% (as of midnight)

THE CLOSING BELL-

The EGX30 fell 0.2% at today’s close on turnover of EGP 2.3 bn (40.8% above the 90-day average). Foreign investors were net sellers. The index is up 0.6% YTD.

In the green: Raya (+2.8%), GB Auto (+1.6%), and Rameda (+1.0%).

In the red: Egyptian for Tourism Resorts (-4.0%), Fawry (-3.1%), and Eastern Company (-1.8%).

It’s a sea of red across Asian markets this morning, following Wall Street’s lead in response to US Fed minutes suggesting the central bank could start winding down stimulus later this year. US futures suggest Wall Street has a chance of opening in the green later today, but that European shares will come under pressure at the opening bell.

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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