Egypt central bank cuts key interest rates by 100 basis points, statement says
CAIRO: Egypt's central bank lowered its key interest rates by 100 basis points on Thursday, its second rate cut in 2025 after keeping rates unchanged for a year.
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Asharq Al-Awsat
a day ago
- Asharq Al-Awsat
Can Tourism Help Revive Egypt-Iran Relations?
Iran has reiterated its desire to strengthen ties with Egypt, expressing hope for a memorandum of understanding to facilitate tourism between the two countries. While analysts say tourism could serve as a key channel for reviving relations, they stress that Cairo remains committed to a cautious, gradual approach in its dealings with Tehran. Speaking to Iran's official IRNA news agency on Monday, Iranian Minister of Cultural Heritage, Tourism and Handicrafts Reza Salehi Amiri said bilateral talks have been held to resume relations with Cairo, adding that the government's strategy aims to 'reopen the path to Egypt'. 'Egypt, with its population of 115 million, has immense cultural, heritage and religious potential,' Amiri said. 'There is a genuine interest among Egyptians in developing ties with Iran, and both governments have the political will to move forward'. He emphasized the importance of establishing formal diplomatic relations, noting that 'significant steps have already been taken and there are no major obstacles to expanding tourism.' Amiri said Tehran is eager to sign a tourism-focused memorandum of understanding with Cairo. 'The first round of talks has been held, and the negotiations are set to continue,' he said, calling for 'the removal of any remaining hurdles'. Amiri pointed to a recent visit to Cairo by Iranian Foreign Minister Abbas Araghchi, saying the groundwork had been laid for building diplomatic and tourism ties. 'With the foreign minister's presence and efforts, political relations will resume, and that will pave the way for deeper cultural engagement'. Araghchi visited Egypt earlier this month and met President Abdel Fattah el-Sisi. In a joint press conference with Egyptian Foreign Minister Badr Abdelatty, Araghchi described the talks as unprecedented and constructive, highlighting 'an advanced path toward cooperation and convergence'. He said the two sides had agreed to maintain political consultations and work on boosting trade and tourism. Abdelatty announced the launch of a new channel for political dialogue below the ministerial level to address various aspects of the relationship. Amiri said Iran has invited Egyptian private sector companies to participate in large-scale tourism projects and voiced Tehran's readiness to facilitate air and land travel, including joint historical and religious tours. He called for activating joint hotel and tourism ventures under strategic agreements between the two nations. Huda Raouf, a political science professor and head of the Iranian Studies Unit at the Egyptian Center for Thought and Strategic Studies, told Asharq Al-Awsat that 'tourism is one of the sectors with the most potential for a breakthrough in Egypt-Iran ties, especially with Iran's interest in religious tourism'. But she added that Cairo remains cautious. 'While Egypt is open to dialogue with Iran on several files, it is taking a deliberate and measured approach to deepening relations.' Raouf noted that Egypt is in contact with Iran on key regional issues, including Red Sea security and the Gaza Strip, but is proceeding 'with calculated steps'. She said full normalization would only come 'at a time aligned with Egypt's national interests'. She also pointed out that the easing of entry procedures for Iranian tourists currently applies only to South Sinai. In March 2023, Egypt announced a package of measures to boost foreign tourism, including a provision allowing Iranian tourists to obtain visas upon arrival at airports in South Sinai. The plan, which required tourists to travel in organized groups and through pre-coordinated tour operators, was welcomed by Tehran at the time. Former Egyptian Assistant Foreign Minister Hussein Haridy told Asharq Al-Awsat that Iran's push to promote religious tourism in Egypt is not new. 'Cairo continues to adopt a gradual approach to building ties with Tehran,' he said. 'Developing political and diplomatic relations will have a spillover effect on other areas,' Haridy added, but cautioned that progress will unfold at a pace suitable to both sides. He linked any acceleration in bilateral engagement to the outcome of ongoing US-Iran nuclear negotiations. This is not the first time Iran has sought to establish tourist links with Egypt. Between 2011 and 2013, similar efforts were made but failed to yield results. The two countries severed diplomatic ties in 1979, with limited relations restored in 1990 at the chargé d'affaires level. Over the past two years, Egyptian and Iranian ministers have held multiple meetings to explore avenues for improving ties. Ambassador Rakha Ahmed Hassan, another former Egyptian assistant foreign minister, said tourism may be the easiest entry point for broader engagement. 'There have already been discussions about launching direct flights between the two countries,' he said. 'There is no fundamental reason preventing a closer relationship'. Hassan highlighted Iran's interest in religious tourism and sites associated with the Prophet's family in Egypt. Araghchi's recent visit to Cairo included prayers at the historic Hussein Mosque and dinner at the iconic Naguib Mahfouz restaurant in the Khan el-Khalili bazaar, accompanied by prominent Egyptian figures, including former foreign ministers Amr Moussa, Nabil Fahmy and Mohamed el-Orabi.
Arab News
2 days ago
- Arab News
Jordan's foreign exchange reserves hold steady at $22.76bn in May
RIYADH: Jordan's foreign exchange reserves remained largely unchanged in May, standing at $22.76 billion, as per new data released by the Central Bank of Jordan. The slight month-on-month dip — about 0.2 percent from April — reflects broad stability in the Kingdom's external buffers. Jordan's foreign exchange figures are broadly in line with trends observed across other Middle East and North African countries. The Qatar Central Bank recorded a 3.6 percent increase in its foreign currency reserves and liquidity, reaching 258.135 billion Qatari riyals ($70.9 billion) in May, up from 249.165 billion riyals in May 2024. Egypt's foreign exchange reserves rose to $48.525 billion by the end of May, compared to $48.144 billion in April, marking an increase of $381 million. 'The Central Bank of Jordan stated in a statement today that its total foreign reserves are sufficient to cover the country's imports of goods and services for approximately nine months,' the Qatar News Agency reported. The central bank also reported that gold holdings at the end of May were valued at $7.76 billion, totaling 2.345 million ounces, underscoring the role of bullion in Jordan's reserve composition. 'It added that the presence of comfortable levels of foreign reserves enhances the ability to influence exchange rates, provides a stable economic environment, and enhances the confidence of foreign creditors and investors,' the QNA report stated, citing the Jordan Central Bank. In May, Jordan's long-term foreign-currency issuer default rating was affirmed at 'BB-' with a stable outlook by Fitch Ratings, citing the country's macroeconomic stability and progress on fiscal and economic reforms. The US-based credit rating agency noted that the rating and stable outlook also reflect Jordan's resilient financing sources — including a liquid banking sector, a robust public pension fund, and sustained international support. Despite the stable outlook, Jordan's credit rating remains below that of several other countries in the region. In February, Fitch affirmed Saudi Arabia's IDR at 'A+' with a stable outlook, while the UAE was rated 'AA-.' Fitch said the ratings are constrained by high government debt, moderate growth, risks from domestic and regional politics, as well as current account deficits and net external debt levels that exceed those of rating peers. A 'BB' rating indicates elevated vulnerability to default risk, particularly in the event of adverse shifts in business or economic conditions. However, it also suggests some degree of financial or operational flexibility in meeting commitments. Fitch also noted that Jordan's government remains committed to advancing its three-pillar reform agenda — spanning economic, public administration, and political sectors — despite external pressures. The agency added that the pace of reforms will continue to be shaped by the need to preserve social stability, resistance from vested interests, and institutional capacity limitations.
Argaam
2 days ago
- Argaam
Gold retreats on lower expectations for rate cuts in US
Gold futures prices declined after a strong US jobs report dampened expectations of interest rate cuts by the Federal Reserve. Today, gold futures for August delivery eased 0.35%, or $10.90, to $3,335.70 per ounce. Meanwhile, spot gold prices rose by 0.15%, or $4.78, to $3,315.20 per ounce as of 8:57 a.m. Mecca time. The US dollar index—which measures the performance of the greenback against a basket of six major currencies—fell by 0.2% to 99 points after earlier touching 98.95. While July silver futures rose by 0.25% to $36.24 per ounce, spot palladium prices fell by around 0.15% to $1,049.66. In contrast, spot platinum prices rose by 2.3% to $1,195.35. Investors have scaled back their bets on rate cuts this year to just one cut in October, down from two previously expected, after the US economy added more jobs than anticipated in May, according to Reuters.
