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See - Sada Elbalad
6 days ago
- Business
- See - Sada Elbalad
Egypt's Core Inflation Rises Slightly to 11.6%, Says Central Bank
Taarek Refaat Egypt's annual core inflation rate edged up to 11.6% in July 2025, up from 11.4% in June, according to a statement released Sunday by the Central Bank of Egypt (CBE). The data, which underscores ongoing inflationary pressures in the economy despite recent cooling trends, arrives amid cautious optimism about the broader economic outlook. The monthly core inflation, which strips out volatile items such as food and energy, recorded a deflation of -0.3% in July. This contrasts with a sharper monthly deflation of -0.5% in July 2024, and -0.2% in June 2025, showing a potential stabilization in consumer prices. In parallel, Egypt's official statistics agency, the Central Agency for Public Mobilization and Statistics (CAPMAS), reported that the monthly headline inflation rate for urban consumers stood at -0.5% in July 2025, slightly improving from 0.4% in July 2024, and down from -0.1% in June 2025. On a year-on-year basis, urban headline inflation slowed to 13.9% in July, compared to 14.9% in June. While still high, this decline offers a modest sign that the government's monetary tightening and subsidy adjustments may be gradually taking effect. The figures reflect a complex balancing act for the Central Bank, which has been grappling with the aftermath of global supply chain shocks, local currency depreciation, and structural fiscal reforms. The narrowing gap between core and headline inflation suggests that while food prices may be stabilizing, underlying price pressures in other sectors remain persistent. Analysts expect the bank's Monetary Policy Committee to weigh these numbers carefully in its next interest rate decision, especially as Egypt continues to navigate a post-IMF reform program and seeks to maintain investor confidence. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 Videos & Features Story behind Trending Jessica Radcliffe Death Video News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Arts & Culture Lebanese Media: Fayrouz Collapses after Death of Ziad Rahbani
Business Insider
16-06-2025
- Business
- Business Insider
Ghanaian cedi's reign as Africa's best-performing currency faces setback
Ghana's cedi, which briefly held the title of Africa's best-performing currency in early June 2025, has hit a major stumbling block amid surging demand for U.S. dollars and a sharp decline in physical dollar liquidity at local banks. Ghana's cedi experienced a major reversal, losing gains made earlier in June 2025 Inflation rates in Ghana fell to a three-year low in May, reaching 18.4%, yet, recent forex instability threatens progress. The Bank of Ghana faces pressure to stabilize the currency as delayed export receipts and increasing import demands strain the forex market. The Bank of Ghana's official exchange rates have erased all modest gains made earlier in the month, as the cedi continues to weaken against the dollar. The reversal follows weeks of modest recovery, supported by central bank interventions and a temporary slowdown in import demand. Ghana's inflation rate had fallen to a three-year low in May, easing to 18.4% from 21.2% in April, thanks to a stronger currency and reduced import costs. However, the recent dollar shortage is undermining that progress, intensifying pressure on the foreign exchange market. Cedirates, an online currency monitoring platform, reported a sharp increase in dollar rates this week as financial institutions struggled to meet demand. The shortage has made it difficult for Ghanaians to withdraw dollars from banks, reflecting broader instability in the forex market. Dollar shortages reported Over the past week, several commercial banks and forex bureaus in Accra and other major cities have reported an acute scarcity of physical dollars, making it difficult for customers to withdraw or access hard currency. Customers attempting to make dollar withdrawals, especially for business transactions or travel, have been turned away or told to wait indefinitely. The shortage has led to a widening gap between official and parallel market rates, fueling speculation and further weakening confidence in short-term forex stability. Currency traders say the shortage is linked to a mix of delayed inflows from export receipts, declining remittances, and increased demand from importers. ' There simply isn't enough dollar liquidity in the system right now, ' one banker said. ' We're telling clients to wait until next week when we expect some fresh inflows from correspondent banks and central bank interventions.' More dollars expected as IMF disbursement nears The Bank of Ghana (BoG), which implemented a series of monetary and regulatory measures earlier this month including dollar sales and forward auction interventions to stabilize the cedi, now faces renewed pressure to act swiftly amid deepening currency volatility. Analysts warn that if the physical dollar shortage persists, it could fuel inflation, boost black market activity, and further complicate Ghana's post-IMF program recovery. However, Cedirates, an online currency monitoring platform, reported that Ghana is expected to receive a fresh supply of physical dollars next week, which could offer some short-term relief. In December 2024, the International Monetary Fund (IMF) Executive Board approved a $360 million disbursement to Ghana under its $3 billion Extended Credit Facility (ECF) program, following the successful completion of the third review of the country's performance.
