Author Archives: nassima1979

with reference to the central bank of Egypt and the Egyptian cleaning company’ letter dated 24 September to the Egyptian stock exchange to renew the subscription NO. 2 of the Egyptian treasury bonds on 10 September 2029 under the principal dealers system with an additional value of 2280450000 L.E , the total vale of this issue after an increase of 918120000 distributed over 9181200 bonds with par value of 1000 L.E and fixed rate 14.4% payable every March and September .

Dr. Mostafa Madbouly, Prime Minister, held a meeting today to follow up the steps of establishing the commodity exchange in Egypt, in the presence of Dr. Ali Moselhi, Minister of Supply and Internal Trade, Ibrahim Al Arabi, President of the Federation of Chambers of Commerce, Mohamed Farid, Chairman of the Egyptian Stock Exchange, and officials of a number of Stakeholders.

At the outset of the meeting, Dr. Mostafa Madbouly, Prime Minister pointed out that the importance of the establishment of the commodity exchange in Egypt is to protect small farmers by collecting, classifying and pricing their production, and the establishment of the commodity exchange towards creating transparency in pricing and thus contribute to reduce inflation caused by fluctuation Commodity prices, the ability to export products to small farmers after extracting a birth certificate for the product is traded on the commodity exchange.

Madbouli added: “ The commodity exchange will contribute to putting Egypt on the global map of commodities trading through the planned stock exchange to exploit its strategic location and contribute to attracting foreign capital.It will also increase the state’s ability to plan its needs of basic commodities that may be traded in the regulated market. ”

For his part, Minister of Supply and Internal Trade, Dr. Ali Meselhi, explained that the establishment of the commodity exchange is linked to the logistics areas and their places, and this is an important part of the internal trade system, pointing out that there is continuous cooperation with the Federation of Chambers of Commerce and the Egyptian Stock Exchange in this regard. On the general framework of the establishment of the Egyptian Stock Exchange, as is coordinated with banks, we are currently preparing to announce the establishment of the Commodity Exchange in October, and it was agreed that the share of the commodity exchange will be 60% for the government and 40% for the private sector.

He pointed out that there are currently 18 areas in Egypt, where logistical areas, or distribution chains, are being constructed, with an area of ​​less than 25 acres.

During the meeting, Mr. Mohamed Farid, Chairman of the Egyptian Stock Exchange, reviewed the features of the project to establish a commodity exchange in Egypt, pointing out that the establishment of a commodity exchange for the present market aims to have a regulated market for the storage of tradable goods, and to be attractive to a larger segment of traders and investors to deal with them. This will provide a market that competes with regional and international stock exchanges.

Since the commodity exchange is a regulated exchange, there will therefore be disclosure requirements for traders and brokers to enable the state to calculate tax rates and develop related intermediary companies, according to the chairman of the Egyptian stock exchange.

Farid explained that the establishment of the commodity exchange will have a positive effect on the farms. A structured commodity market, if combined with futures and options contracts, may stimulate agriculture to increase the cultivated areas of the traded commodity due to the existence of detailed data on the trading of these commodities, enabling the farmer to plan. Agricultural.

As for warehouses, the commodity exchange will contribute to the process of developing warehouses and storage mechanisms in Egypt on the commodities targeted for trading on the exchange.

At the level of dealers in the market, according to the Chairman of the Stock Exchange, the existence of such a commodity exchange is an important mechanism for the pricing of goods through market mechanisms of supply and demand, and a mechanism for the gradual collection of data on dealers (traders and brokers) and stores that will be used as qualified stores to deal in the stock market as well as data As well as its usefulness in the possibility of the development of futures contracts or options contracts on these commodities in the future, so that dealers to better financial planning, and hedge against the risks of price fluctuations.

The commodity exchange is also useful in reducing the dominance and control of some traders on a certain commodity and controlling its price, and contributing to the development of standards and specifications for specific commodities to be applied and referenced when necessary.

During the meeting, the Chairman of the Stock Exchange pointed out that the most important elements that must be available to establish a commodity exchange in the present market are the selection and qualification of the stores that will be approved by the ASE and electronically linking them to the ASE, the preparation of trading, clearing and settlement programs, risk management and trading control, and a list of sorting and classification companies. And the establishment of a mechanism for the dissemination of trading data and inventory available in stores.