Latest news with #CentralBank
Daily News Egypt
3 hours ago
- Business
- Daily News Egypt
Private sector lending rises 10.1% in Q1 2025 as inflation eases: CBE
The Central Bank of Egypt (CBE) has announced that local currency loans to the private sector grew by an average of 10.1% in the first quarter (Q1) of 2025, a sharp turnaround from the -8.7% contraction recorded during the same period in 2024. In a recent report, the CBE attributed this rebound primarily to stronger demand from private businesses, supported by a significant decline in the annual headline inflation rate in February 2025. The Bank noted that these developments signal a recovery in real economic activity across the private sector, a trend expected to continue in the coming months. On the monetary side, the CBE projects a slowdown in the growth of local liquidity, expecting it to ease to 23.2% by the end of June 2025—down from 28.7% a year earlier. Liquidity growth is forecast to stabilise at 22.8% by the end of June 2026. This anticipated deceleration reflects the diminishing impact of the March 2024 exchange rate unification, which had previously triggered a surge in the banking sector's net foreign assets and created a strong base effect beginning in March 2025. Looking ahead, the Central Bank expects headline inflation to average between 14% and 15% in 2025 and decline further to a range of 10% to 12.5% in 2026. This compares to an average of around 28.4% in 2024. While inflation is projected to continue falling throughout 2025 and 2026, the CBE cautions that the pace of decline will moderate following the sharp drop observed in early 2025. This more gradual disinflation is attributed to ongoing fiscal consolidation efforts and the slower retreat in non-food commodity prices. The Bank reiterated its commitment to achieving its inflation target of 7% (± 2%) by the fourth quarter of 2026. It affirmed that current monetary conditions remain appropriate to support this path, adding that it will maintain a positive real interest rate to help secure a sustained decline in core inflation and anchor inflation expectations. In a separate update, the CBE disclosed that the net foreign assets (NFAs) of the banking system—which includes both the Central Bank and commercial banks—turned positive as of May 2024, reaching a surplus of $15.1bn by March 2025. This improvement was largely driven by inflows from the Ras El-Hekma deal and renewed foreign investment in Egyptian debt instruments, buoyed by increased investor confidence following the exchange rate unification. Additional support came from a recovery in remittances from Egyptians abroad and continued backing from international financial institutions.
Yahoo
5 hours ago
- Business
- Yahoo
Kremlin launches digital rouble to control Russians – Ukraine's Defence Intelligence
Defence Intelligence of Ukraine has reported on "another step by the criminal regime in Moscow aimed at strengthening total control over its own population" — the introduction of a digital rouble. Source: Defence Intelligence of Ukraine (DIU); Latvia-based Russian media outlet Meduza Details: Intelligence reports show that starting in early 2026, Russian state employees will begin to receive their salaries in "digital roubles". DIU expects that Russia will completely control the circulation of the virtual rouble: it will track every transaction, and the spending of digital roubles will be limited by the citizen's place of residence or the type of goods. Moreover, intelligence analysis shows that the Kremlin regime will be able to block citizens' accounts without a court decision and automatically deduct taxes and fines from them. The Russian media outlet Meduza writes that the digital rouble is a new form of Russian currency on par with cash and non-cash roubles. Each digital rouble in the Russian Federation will be assigned a unique code (similar to the series and number on banknotes). Electronic money will be stored in electronic wallets opened on a specially designed platform of the Central Bank. Russians say that the digital rouble has many advantages. In particular, if a bank goes bankrupt, people will not lose their money. Also, the digital rouble will allegedly significantly reduce the cost of money transfers, lower commissions for businesses, etc. Support Ukrainska Pravda on Patreon!
Irish Times
a day ago
- Business
- Irish Times
Irish home loans increase by €245 million in April
House purchasing loans increased by €245 million in April in line with a steady increase since May 2024, according to data released by the Central Bank. Its money and banking statistics show that on an annual basis, there was an increase in overall lending to households of €4 billion, or 3.9 per cent, in the 12 months to the end of April. This was mainly led by loans for house purchase, which increased by €3.4 billion, or 4 per cent. Similarly, consumer credit increased by €153 million, with annual flows worth €876 million in the year. Other forms of loans to households continued a downward trend, down €65 million on a monthly basis and €274 million annually. READ MORE Net lending to households was €333 million in April 2025, down from €625 million in the previous month, which the Central Bank said was 'mostly driven by loans for house purchase as well as the float in loans for consumption'. Over the month of April, household deposits recorded a net flow of more than €1.7 billion, which the Central Bank said was 'significantly higher' than the €409 million recorded in March. In annual terms, net household deposits increased by €9.7 billion, or 6.3 per cent, to reach almost €164 billion. Overnight deposits were €2.5 billion during the period, which the Central Bank said was 'significantly higher' than in the prior month. 'This represents the highest annual flow in the year so far after recording two successive slowdowns,' it said. Deposits from non-financial corporations (NFCs) turned positive last month, driven by medium and short-term loans, for a total positive flow of €381 million. Long-term loans, on the other hand, dropped €26 million in the month. In the first quarter of the year, the net asset value of Irish resident investment and money market funds decreased for the first time since Q3 2022, dropping to €4,945 billion. A €56 billion decrease in the net asset value from the final quarter in 2024 to the first three months of the year was due to 'significant negative revaluations, which were partially offset by transaction inflows', the Central Bank said. Equity firms dropped the most, down €49 billion, whereas other, mixed, hedge and real estate funds dropped less than €10 billion. Going against the trend, bond funds increased by €8 billion, and money market funds stayed static at the same level as the previous quarter.
Reuters
a day ago
- Business
- Reuters
Brazil tightens prudential rules, adds individual liquidity requirements for banks
BRASILIA, May 30 (Reuters) - Brazil's National Monetary Council (CMN) tightened prudential rules on risk management, liquidity and capital for financial institutions, introducing individual requirements to complement existing rules for conglomerates. According to a central bank statement on Friday, the changes approved by the country's top economic policy body strengthen the stability of the financial system and align with the international Basel III regulatory framework as well as recommendations from the IMF and World Bank. The government will introduce a liquidity requirement taking effect in July 2026 for standalone financial institutions, aligning with the methodology already used for financial conglomerates. The rule will apply to institutions that are part of conglomerates classified under "Segment 1," which includes large and systemically important entities subject to stricter regulatory standards. Further changes to integrated risk management, effective in September, will seek to ensure timely liquidity transfers among institutions within the same conglomerate, the central bank said. Meanwhile, the leverage ratio calculation has been updated and expanded to cover all institutions except those with a low-risk profile. Its implementation will be phased in between July 2026 and January 2028. According to the central bank, the new requirement will apply on both consolidated and individual bases, including to payment institutions that lead large conglomerates integrated by financial institutions.
Daily Maverick
a day ago
- Politics
- Daily Maverick
Can Mauritania's new dialogue heal historic divides or will it repeat past failures?
Without guarantees, President Ghazouani's dialogue — the country's sixth — could widen the political divisions that threaten stability. On 27 November 2024, President Mohamed Ould Ghazouani called for a national political dialogue to strengthen social cohesion and consolidate democracy in Mauritania. In doing so, he fulfils an electoral promise and a key political commitment made in his second term. However, opinion is divided on whether this dialogue can succeed, considering that over the past two decades, five political dialogues (in 2004, 2005, 2007, 2017 and 2018) failed to resolve the country's fundamental problems. These include social divisions, poor governance and corruption, electoral dysfunction, the persistence of slavery, and the humanitarian liabilities caused by government abuses against black Mauritanian civil servants and soldiers between 1986 and 1991. According to unofficial figures, Mauritania's population is 70% Arab-Berber (30% Beydane and 40% Haratine) and 30% Afro-Mauritanian (Fulani, Wolof and Soninke). Beydane are historically dominant, holding political and economic power. The president's party and its parliamentary allies view the dialogue as an opportunity to enhance engagement between political actors. But the opposition remains cautious, wary that this might simply repeat previous futile exercises conducted since the country's transition to democracy in 1992. The new dialogue — which does not have a specific time frame — responds to repeated calls from opposition parties seeking an opportunity for frank debate to help solve the country's major challenges. Mauritania has been working to get the national dialogue started since February, with negotiations under way to secure participation from as many political and civil society actors as possible. Ghazouani first held meetings with political party leaders to encourage their involvement. Consultations Then dialogue coordinator Moussa Fall, former head of Mauritania's Central Bank and 1970s student struggle leader, began consultations with various stakeholders to outline the process and ensure their participation. Several political actors have already submitted their proposals for the dialogue's roadmap. However, some opposition leaders have set out conditions that must first be agreed to ensure the dialogue succeeds. The Union of the Forces of Progress demands that Ghazouani guarantee implementation of the dialogue's decisions and establish a consensual follow-up mechanism to ensure action is taken. The Alliance for Justice and Democracy party calls for official recognition of national languages, withdrawal of the national education framework law, and a repeal of the political parties law. The latter law was criticised for giving the Minister of the Interior excessive powers to recognise and dissolve political parties. The most notable rejection of the dialogue process so far is from Biram Dah Abeid, leader of the Initiative for the Resurgence of the Abolitionist Movement, which campaigns against slavery. Abeid was runner-up in the 2014, 2019 and 2024 presidential elections, and demands official recognition of his party. He also wants assurances that the government will resolve the case of young people killed during demonstrations in Kaédi following the announcement of the 2024 election results. Abeid further insists on transparency throughout the dialogue, pledges that its decisions will be implemented, and the appointment of a neutral body to supervise the process, instead of the Ministry of the Interior. The dialogue will have to deal with deeply opposing views on sensitive issues such as national languages, racial discrimination, historical humanitarian abuses and slavery. Arab nationalists in Mauritania argue that opening these issues up for debate could threaten the country's identity and national cohesion. Their recent outbursts on social media and in the press show their determination to oppose any discussion of these matters. 'Buying time' Meanwhile, black Mauritanian activists and the Initiative for the Resurgence of the Abolitionist Movement believe this dialogue will be no different from previous ones. In their view, past dialogues merely bought time for successive governments, as they failed to implement proposed decisions and solutions. Activists and supporters of Abeid's movement demand guarantees that debates will cover all issues without restriction, including building social cohesion and ending slavery practices. They also want the president's personal commitment to implement the dialogue's recommendations. Despite these many reservations, the government is forging ahead to encourage participation. Public opinion and democratic forces in Mauritania generally emphasise the need for national agreement on solving the divisive issues that threaten the country's peace, unity and justice. The planned dialogue has the potential to offer solutions. Ghazouani sought to provide reassurance on 11 March 2025, when he addressed leaders of the majority and opposition parties, expressing his commitment to organise a dialogue that would resolve fundamental problems of national unity and good governance. But in order to break with the tradition of one-off dialogues that achieve little, authorities must do more than make announcements. The success of this initiative will depend on its ability to tackle sensitive issues head-on through a transparent, inclusive process. An independent monitoring mechanism that all participants agree on is vital to ensure that concrete actions are taken in response to the dialogue's decisions. Without meaningful change, Ghazouani's dialogue risks deepening the political divisions it aims to reconcile, threatening stability in Mauritania. DM
