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Tuesday, 31 August 2021

Egycomex to go live in 1Q2022

Egypt’s long-awaited commodities exchange (Egycomex) is set to start full operations in 1Q2022, Ibrahim Ashmawy, head of the Internal Trade Development Authority and chairman of the new exchange, told Akhbar Al Youm. The commodities exchange began trading on a pilot basis this past spring to coincide with the start of the wheat harvest, prior to which some 450 wheat collection points were established across the country for farmers wishing to offer their harvest on Egycomex, Ashmawy noted.

A twinning grant contract is set to be signed with the Belarusian Universal Commodity Exchange (BUCE) to benefit from its expertise in database building, membership requirements, and trading commissions in the mercantile exchange market, Ashmawy said, without specifying a timeframe. BUCE is billed as one of the largest spot exchanges in Eastern Europe, with an annual turnover of about USD 2.3 bn.

Where do things stand? The law governing the forthcoming Egyptian commodities exchange — which has been in the works since February 2018 when it was made possible after amendments made to the Capital Markets Act — should now be in the hands of the House of Representatives after receiving cabinet approval last year. Ashmawy had previously told us that traders would be able to buy and sell wheat, oil, sugar, and rice when the exchange launches, and said in a separate interview that gold, steel and cotton would be added later.

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