SAMA to launch virtual riyal for banks

SAMA to launch virtual riyal for banks
Updated 06 October 2017

SAMA to launch virtual riyal for banks

SAMA to launch virtual riyal for banks

JEDDAH: The Saudi Arabian Monetary Agency (SAMA) will implement a pilot project to issue a virtual/digital currency that will be traded exclusively among banks to avoid any economic impact, SAMA Governor Ahmed Al-Khulaifi has revealed.
SAMA will also study the positive aspects of the practice and consider whether or not it will continue.
Al-Khulaifi ruled out any plan to issue a digital currency for trading between individuals and companies, adding that the Saudi banknotes currency will be dispensed with the coins.
Quoted by Al-Hayat daily, Al-Khulaifi said in a press conference at SAMA headquarters in Riyadh on Wednesday that "The Saudi Riyals banknotes currency will be dispensed and one Riyal category will be issued into coins instead in the next stage."
He also confirmed that SAMA "provided all equipment needed for the issuance and circulation of the Riyal coins as it will be available at the headquarters of the agency, its branches and the entire banking sector."
Al-Khulaifi was surprised by the decline experienced by the Saudi riyals in futures exchange. He said he sees no reason for that as he described liquidity in the banking system as good.
He pointed out that "private consumption expenditure exceeded trillion riyals last year, an increase of 5 percent compared to 2015, while government consumption expenditure amounted to SAR16 billion."
He also disclosed that the average per capita private consumption amounted to SAR33,000 last year.
He described SAMA's reserve assets as "still good, it amounted to SAR1.8 trillion in August. They cover more than 30 months of Saudi imports of goods and services and account for more than 70 percent of GDP."


Egyptian minister hails reforms as public investment jumps 70%

Updated 03 December 2020

Egyptian minister hails reforms as public investment jumps 70%

Egyptian minister hails reforms as public investment jumps 70%
  • The rate of economic growth reached about 1.8 percent — less than the population growth rate
  • A plan to control population increase will begin in January 2021

CAIRO: The volume of public investment in Egypt grew by 70 percent in the 2020/2021 fiscal year, reaching 595 billion Egyptian pounds ($37.9 billion), Minister of Planning and Economic Development Hala Al-Saeed has said.

In a speech at the Egypt Economic Summit 2020, she said that Egypt could become one of only three economies across the Middle East to achieve economic growth this year.

The growth followed reforms that helped make the Egyptian economy “more flexible” and “able to absorb external shocks,” she said.

Al-Saeed said Egypt faced great challenges that led to imbalances in the monetary, financial and external axes, which caused a decline in Egyptian economic indicators. The rate of economic growth reached about 1.8 percent — less than the population growth rate.

The minister added that a plan to control population increase will begin in January 2021, as Egypt’s population is expected to grow by 2.5 million annually and reach 130 million in 2030.

Al-Saeed said that achieving development requires sustained economic progress to overcome weak population growth and the challenges facing the Egyptian economy in light of political and economic changes and the coronavirus pandemic.

The challenge helped Egypt commit to reforms based on comprehensive planning and an ambitious vision for the future, in the form of Egypt’s Vision 2030 sustainable development strategy, the minister said.

Egypt’s implementation of reforms since November 2016 led to “overall stability” and “comprehensive growth.” This was reflected in positive indicators that the Egyptian economy saw before the coronavirus outbreak, she added.

The rate of economic growth was about 5.6 percent in the first half of the 2019/2020 fiscal year, and about 5 percent during the third quarter. There was an average growth of 5.4 percent in the first nine months of the year, before the coronavirus outbreak.

Al-Saeed said that international institutions had “positive expectations” regarding the Egyptian economy.

She referred to the results of the World Economic Outlook report issued by the International Monetary Fund in October 2020, in which the Fund raised its expectations for Egypt’s gross domestic product growth to 3.5 percent for the year, compared with a previous forecast of 2 percent in the June report.

If the prediction is realized, it will make Egypt among only three economies in the Middle East and Central Asia to achieve economic growth this year.