home | rich profile | rich freebies | rich tools | rich data | online shop | my account | register |
  rich wrap-ups | **richLIVE** | richPodcasts | richRadio | richTV  | richInterviews  | richCNBC  | 
Satchu's Rich Wrap-Up
 
 
Wednesday 28th of September 2022
 








One of the preeminent Thinkers today is @CreditSuisse's Zoltan Pozsar and he said
World Of Finance


One of the preeminent Thinkers today is @CreditSuisse's Zoltan Pozsar and he said 



The policymakers to follow are no longer central bankers, but heads of state at the pinnacle of power who aren’t known for the transparency of their thinking – especially not when at war. @CreditSuisse Zoltan Pozsar
I have no faith in those at  the pinnacle of power. None. So I expect more babble and a doubling down.

read more




Morgan Stanley sees sterling falling to $1.00 by year end. @ReutersJamie
World Of Finance


Morgan Stanley sees sterling falling to $1.00 by year end. @ReutersJamie


"Intervention or even an emergency rate hike are unlikely to support GBP in isolation. Tighter monetary policy which raises concerns about growth and fiscal sustainability ... is unlikely to see GBP strength in response"

read more





International Markets
World Of Finance

Currency Markets at a Glance WSJ

Euro 0.9551
Dollar Index 114.53
Japan Yen 144.66
Swiss Franc 0.99515
Pound 1.0646
Aussie 0.6381
India Rupee 81.886
South Korea Won 1439.88
Brazil Real 5.3792
Egypt Pound 19.4918
South Africa Rand 18.12735

read more




"Habeck warns of "irreversible damage" to the German economy": The German government officially said that the "future viability of the entire economy of the country" is under threat @AZmilitary1
World Of Finance


Habeck warns of "irreversible damage" to the German economy": The German government officially said that the "future viability of the entire economy of the country" is under threat @AZmilitary1

read more



24 August 2022 : in Germany, $2 trillion of value added depends on $20 billion of gas from Russia... War and Industrial Policy @CreditSuisse Zoltan Pozsar
World Of Finance



24 August 2022 : in Germany, $2 trillion of value added depends on $20 billion of gas from Russia... War and Industrial Policy @CreditSuisse Zoltan Pozsar




: in Germany, $2 trillion of value added depends on $20 billion of gas from Russia...

...that’s 100-times leverage more than Lehman’s.


read more



















Egypt's import squeeze hobbles economy as dollars run short @Reuters
Africa


Egypt's import squeeze hobbles economy as dollars run short @Reuters 

The war in Ukraine has deepened Egypt’s economic woes. 

It sent the import-reliant nation's bill for wheat and oil soaring and with it the need for dollars, and crushed tourism from two of its largest markets - Ukraine and Russia, a key source of hard currency.

A loss of confidence in the weakening Egyptian pound and an exodus of local and overseas investors from short-term government paper have contributed to dollars running short. 

This week the central bank, where the governor was abruptly replaced in August, eased the restrictions slightly by allowing companies to use foreign currency deposits or transfers to secure letters of credit to pay for imports, according to new regulations widely reported in local media. The central bank did not respond to a request for comment.
But the import bottleneck is expected to drag on.
Egypt's annual finished vehicle imports, previously worth about $8 billion, are expected to drop by more than half this year, said one senior industry executive. 

Prices of popular used cars have doubled and some traders are hoarding them in expectation of further hikes, according to two second-hand car dealers in Cairo.
"There's a buying frenzy stemming from people's fears about what may happen later," said a third used car dealer in the Egyptian capital, Hany Ahmed. 

"Some are buying cars as a store of value in light of the local currency devaluation."
DOLLARS DISAPPEAR
In April-June, imports of consumer durables fell by 57% from the same quarter the year before, according to the most recent quarterly figures from the state statistics agency.
Into the summer, some clothing retailers unable to secure new seasonal stock left winter collections on the shelves.
Bankers say dollars have largely disappeared from the interbank market, and traders say that for most people, securing hard currency through a letter of credit to be able to import goods has become a long and frustrating task.
Net foreign assets in the banking system fell to the equivalent of a negative 369 billion Egyptian pounds ($19 billion) in July from a positive 248 billion in July 2021 as the central bank drew them down to support the value of the currency against the dollar,
Foreign currency reserves slipped to $33 billion in July from $41 billion in January despite an influx of cash from Egypt's Gulf allies and the new import rules.
U.S. Federal Reserve rate hikes that started in March have complicated Egypt's efforts to attract local and foreign borrowing to plug current account and budget deficits.
With rising debt, Egypt has been negotiating for a new loan with the International Monetary Fund since March to help shore up its economy. read more
In the meantime, the Egyptian pound has lost more than 22% of its value against the dollar since March.
BACKLOG AT PORTS
Exemptions were granted for essential goods and industrial inputs before the latest import rule easing from the central bank, but agents have still struggled to pay for the letters of credit needed to get cargo released and diplomats say some exporters to Egypt have become wary.
A trade ministry spokesman declined to comment on the reported difficulties.
"There are stockpiles of goods stacked at customs," said Ahmed Shiha from the importers' division at the Cairo Chamber of Commerce. "Some cargoes could be stuck (at ports) over three or four months."
The construction sector, which helped keep Egypt in economic growth through the COVID-19 pandemic, has been impacted by the delays, developers said.
"I can't say there are projects that have stopped, because the real estate sector uses a lot of locally produced materials. But there may be projects that have delayed openings by two months for example, so people can get their imports in," said Mohamed Hany el-Assal, CEO of Misr Italia Properties.
Even some goods many would consider essential have been affected. 

One Cairo pharmacy owner said Egyptian medicine suppliers are having trouble importing foreign-made drugs, while local manufacturers have cut production because of difficulty importing active ingredients.
Officials say reserves of strategic commodities including wheat have been maintained.
"There's a delay (for food products) at the ports for sure," said Ashraf el-Gazayerly, a senior member of the food chamber at the Federation of Egyptian Industries. "Stocks are decreasing but there's no shortage."

read more


Egypt: Investors are offering to sell pound at an all-time low:Pound <1% away from record low in offshore market @ZiadMDaoud
Africa


Egypt: Investors are offering to sell pound at an all-time low:Pound <1% away from record low in offshore market @ZiadMDaoud



- Central bank data show pound quotes surpassing Dec-2016
- Pound <1% away from record low in offshore market
- Derivatives traders are stepping up bets for depreciation (chart)

read more




Ghana’s finance ministry and the Bank of Ghana have commenced discussions for an International Monetary Fund-supported program, the ministry said @business
Africa


Ghana’s finance ministry and the Bank of Ghana have commenced discussions for an International Monetary Fund-supported program, the ministry said @business 

A key prerequisite for a program is confirmation that Ghana’s debt is on a sustainable path, for which the nation is currently carrying out a comprehensive debt sustainability analysis, it said. 
The government is putting together a comprehensive economic program to form the basis of negotiations with the IMF. 

“The program seeks to establish a macro-fiscal path that ensures debt sustainability and macroeconomic stability, underpinned by key structural reforms and social protection,” the statement said.
Ghana began engaging the IMF in July after homegrown policies, including cutting discretionary expenditure by as much as 30% failed to stem a selloff in the country’s international bonds.

 The country seeks to secure a $3 billion package over three years with the IMF.

read more










 
 
by Aly Khan Satchu (www.rich.co.ke)
 
 
Login / Register
 

 
 
Forgot your password? Register Now
 
 
September 2022
 
 
 
 
 
COMMENTS

 
In order to post a comment we require you to be logged in after registering with us and create an online profile.