Business News

Egypt's central bank said on Wednesday it had hiked interest rates by 600 basis points at an unscheduled meeting and would let the pound trade freely in an apparent move to restore economic stability with the help of Gulf investment inflows. Egypt's pound fell sharply against the dollar as the markets opened, tumbling past 45 pounds to the dollar from about 30.85 pounds, a level Egypt has for months tried to defend. The move marks a long-awaited devaluation, with a more flexible exchange rate being one of the key demands of the International Monetary Fund. Egypt has in the past said it would move to a more flexible exchange rate, only to return to closely managing the currency whenever the pound weakened. This time, it may be betting that hard currency inflows from investment projects including a $35 billion deal with the United Arab Emirates signed in late February will prevent a freefall. The government has also been closing in on the expansion of its existing $3 billion pound support programme with the IMF, officials say. After the central bank announced its decision, Egypt's international bonds soared, with longer-dated bonds enjoyed the biggest gains. The 2047 bond enjoyed the biggest gains, up 3.5 cent at 83.2 cent, Tradeweb data showed. The premium demanded by investors to hold Egypt's international bonds over safe-haven U.S. Treasuries tightened to 529 basis points, its lowest level since June 2021, according to data from JPMorgan The central bank said it had raised the overnight lending rate to 28.25% and its overnight deposit rate to 27.25%, as part of a decision to accelerate monetary tightening and ensure a decline in underlying inflation. "To ensure a smooth transition, the CBE will continue to target inflation as its nominal anchor, allowing the exchange rate to be determined by market forces," the central bank said in a statement. "The unification of the exchange rate is crucial, as it facilitates the elimination of foreign exchange backlogs," it said. While the central bank has had an inflation target until now, it also sought to manage the pound, which has been fixed at 30.85 to the dollar over the past year as the central bank has sought to defend its value amid a chronic shortage of foreign currency. Since early 2022, when the foreign currency shortage worsened, the pound has lost about half its value against the dollar in a series of staggered devaluations. The announcement on Feb. 23 that Emirati sovereign fund ADQ will invest $35 billion within two months in the development of a new city on Egypt's north coast and other projects eased pressure on the Egyptian pound on the black market. The Egyptian government says $10 billion of that money has already been transferred. Procedures to convert another $5 billion from existing deposits in Egypt into Egyptian pounds have also begun, with the remaining funds due to arrive within two months of the signing of the deal, the government said last week. However, analysts say doubts remain over Egypt's commitment to structural reforms that it has often put off implementing, including floating the currency and pulling the state and the military back from their dominant economic role.

PM Modi inaugurated the 17-km Duhai-Modi Nagar North section of the Delhi-Ghaziabad-Meerut RRTS corridor on March 6, marking the operationalisation of Namo Bharat trains on a 34-km stretch of the corridor.The 82-km-long corridor will cut travel time between Delhi and Meerut to under an hour.The entire stretch spans eight stations -- from Sahibabad to Modi Nagar North. The flagging-off the additional section was done by Modi remotely from Kolkata.The extension spans three stations - Murad Nagar, Modi Nagar South and Modi Nagar North.Once fully ready, this line will be the "second largest metro system" in India, Minister Hardeep Singh Puri said at the event.The National Capital Region Transport Corporation (NCRTC) has announced that the construction work for various facilities at Murad Nagar Station is nearing completion. The Automatic Fare Collection (AFC) System, Platform Screen Door (PSD), CCTV installation, Customer Service Centre, Ticketing Counter, Railing, and Washroom construction have been finished.Escalators and lifts have also been installed for easy movement within the station. The work of roof sealing, painting, and lighting is currently in progress. Additionally, two entry and exit gates are being constructed for the convenience of passengers.The Murad Nagar Station has been linked to the Murad Nagar Bus Stand to improve passenger movement. Two stations, Modi Nagar South and Modi Nagar North, have been provided in Modi Nagar due to heavy traffic congestion.The length of both stations is about 215 metres, width around 25 metres, and platform height approximately 16 metres.Modi Nagar, a bustling area known for its heavy traffic, is set to receive some relief. The National Capital Region Transport Corporation (NCRTC) has announced plans to build two stations in the area, namely Modi Nagar South and Modi Nagar North. The new line is expected to solve the long-standing issue of severe traffic jams that are common for this entire area. The newly-added 17-kilometer stretch of the Namo Bharat train will extend the coverage of the Delhi-Meerut RRTS corridor, which boasts impressive design and operation speeds of 180 kmph and 160 kmph, respectively.This is the first time in India that both Namo Bharat trains and the Meerut metro will run on the Delhi-Ghaziabad-Meerut RRTS infrastructure. To make this a reality, NCRTC has implemented European Train Control System (ETCS) Level 2 signalling with Hybrid Level 3 over Long Term Evolution (LTE), marking a pioneering endeavour in global rail transportation, Railway officials said.