Egypt confirms its commodities exchange to start operation by year-end– official

Egypt’s long-anticipated commodities exchange will start operation by the end of the current year, the country’s stock exchange chairman said on Tuesday, reiterating earlier statement made earlier in January.

Speaking at the Egypt Retail Summit, Mohamed Farid said the government is currently in talks with the companies that will be part of the new commodities exchange.

The feasibility studies, that take around 42-48 weeks before starting the operations, are currently under way.

“We are studying all the technological systems to set up the trading platform … Around three offers are understudy to select the suitable platform for the commodities exchange.” Mohamed Farid told a local press.

The formation of Egypt’s commodities exchange which will initially trade five goods including wheat, oils, sugar, and rice, he added.

Egypt, the world’s largest wheat importer, formed the exchange with the aim of providing protection for small farmers and producers and making their stocks available to the wider market.

The exchange has 91 million Egyptian pounds ($5.8 million) in capital and is chaired by Ibrahim Ashmawy, the current head of the internal trade development authority which falls under the supply ministry.

Farmers, traders, and producers will be able to deposit their stocks in any of the supply ministry’s certified storage facilities where they will be evaluated and graded, then directly traded on the electronic platform.

The supply and demand will then determine the price of these commodities for the consumer.