Why Did the Egyptian Mercantile Exchange Halt Trading?

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Wheat, corn, and sugar, three of the most essential ingredients for nutrition, are no longer traded in Egypt. The Egyptian Mercantile Exchange (EMX), an institution for regulating trading operations and transactions in commodity markets, was established in January 2020 through a collaboration between the Egyptian Exchange, the Internal Trade Development Authority, and the General Authority for Supply Commodities. Trade of sugar, wheat, and corn, three key commodities, has been stopped for approximately two months, amidst market volatility and volatile pricing practices. Over the past two months, Egyptian markets have witnessed erratic pricing, due to the shortage of hard currency for importers, following an increase in the value of the Egyptian pound in the parallel market. This eventually prompted some sectors to price and sell their products in dollars, such as iron, fertilizers, and animal feed. The deputy head of the Chamber of Grain Production at the Federation of Egyptian Industries, Abdul-Ghaffar El-Salamouni, stated, “The decision to suspend trading on wheat in the EMX aims to control the market and protect consumers, as some mills are overpricing flour products.” According to Egypt’s Minister of Supply and Internal Trade, Ali El-Sayed Ali…

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The post Why Did the Egyptian Mercantile Exchange Halt Trading? first appeared on Egyptian Streets.

Source: egyptianstreets