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    BREAKING NEWS
    A twin Currency Trade Finance Line of Credit of $50 Million and €50 Million has been validated by the Board of Directors of the African Development Bank Group and the ECOWAS Bank for Investment and Development
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    Egypt made twice as much its Oil seesaws in a way to Insulate itself against a Rise in Oil Prices

    Posted On 11 Dec 2020
    By : New Africa Business News, Staff Correspondent
    Comments: 10

    By Abdul Rahman Bangura–

    Photo Credit: KindPNG

    NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- Egypt has sizably traded additional auxiliary pacts to insure itself against a surge in oil costs, as some importers strive to take expectation of this year’s tax defeat during the 2020-2021 fiscal year ending in June, Finance Minister – Mohamed Maait let out in a
    talk.

    “We did a huge number of hedging contracts,” Maait said from his office in Cairo, without disclosing the size of the program or other details. Egypt also hedged in the previous two financial years, though it didn’t say how much money it spent.

    Further, Oil prices sunk in March and April this year, as the Novel Coronavirus dissipate around the world and lockdowns resulted in the energy market declining. Benchmark Brent crude has since soared to almost $50 a barrel but is still down 25% this 2020. While that’s banged oil exporters, it’s helped the finances of importers especially those which; like Egypt, endow some fuel.

    Those wanting to cinch in the advantages can purchase call alternatives, which give owners the right to amass oil at a predetermined price. In Wall Street jargon, the option is “in the money” if oil rises above the strike price. Maait is still to agree on the plan for the following fiscal year. “We are covered until June 30,” he asserted.

    The North African nation utilized Citigroup Inc. and JP Morgan Chase & Co. to purchase derivatives the first time it teetered against increasing crude prices. It pumps some oil but became a net importer in 2011. The government’s appropriation is established on a regular crude price of $61 a barrel, correlated with $68 in the previous fiscal year. Egypt sliced grants on most petroleum products last year as part of a financial reform program associated to a $12 billion loan from the International Monetary Fund.

    The nation proceeds to partly invest diesel and but loans. Local prices are set quarterly, taking into account global oil prices and the Egyptian pound’s exchange rate. Nonetheless, it’s plausible to be far tinier, the hedging program is a reflector likeness of Mexico’s, where the oil exporter spends billions of dollars to protect against lower prices. This year, the Mexican government will earn a payout of about $2.5 billion from put options, Bloomberg finds.

    Most countries don’t divulge their hedging programs, though oil importers Morocco, Jamaica and Uruguay have bought protection in the past. Egypt is one of the world’s biggest buyers of wheat and is also considering hedging
    against upright prices for the grain. “We are in talks with some banks,” Maait let out.

     

    For New Africa Business News (NABN) Abdul Rahman Bangura Reports,  Africa Correspondent

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    10 Comments

    1. Gilbert December 11, 2020 at 12:59 am Reply

      In Africa, we have the crude oil, let’s do the finishing and use that gas. Kigali Rwanda. Gilbert

      • New Africa Business News, Staff Correspondent December 11, 2020 at 1:01 am Reply

        Thanks for reading, Africa’s fastest growing online newspaper. Please forward http://www.newafricabusinessnews.com

    2. Simon December 11, 2020 at 1:04 am Reply

      Thank you for the newsletters. Like reading the reports. London, England. Simon

      • New Africa Business News, Staff Correspondent December 11, 2020 at 1:06 am Reply

        Thanks for reading, Africa’s fastest growing online newspaper. Please forward http://www.newafricabusinessnews.com

    3. Enoch December 11, 2020 at 1:12 am Reply

      Thank you for the reports. In the Continent, We have enough petrol for our use. May God continue to bless our great Continent. Mother Afrika. Monrovia in Liberia. Enoch

      • New Africa Business News, Staff Correspondent December 11, 2020 at 1:13 am Reply

        Thanks for reading, Africa’s fastest growing online newspaper. Please forward http://www.newafricabusinessnews.com

    4. Kevin December 11, 2020 at 1:19 am Reply

      Our Countries are starting to invest in refinery. Very good. Nairobi Kenya. Kevin

      • New Africa Business News, Staff Correspondent December 11, 2020 at 1:20 am Reply

        Thanks for reading, Africa’s fastest growing online newspaper. Please forward http://www.newafricabusinessnews.com

    5. Baraka December 11, 2020 at 1:25 am Reply

      Like to thank, Journalist Bangura for the reports and of course new Africa news, team. Tanga Tanzania. Baraka

      • New Africa Business News, Staff Correspondent December 11, 2020 at 1:26 am Reply

        Thanks for reading, Africa’s fastest growing online newspaper. Please forward http://www.newafricabusinessnews.com

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    A twin Currency Trade Finance Line of Credit of $50 Million and €50 Million has been validated by the Board of Directors of the African Development Bank Group and the ECOWAS Bank for Investment and Development

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    • Nigeria Launches National Domestic Payments Card Program
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