Egyptian mercantile exchange to launch with Russian wheat

The new trading hub is expected to help attract foreign capital to the country

The Egyptian Mercantile Exchange (EMX), which is set to open on November 27, will begin with Russian wheat being offered, the country’s deputy minister of internal trade and supply, Ibrahim Ashmawy, announced on Saturday.

“Tomorrow the Egyptian Mercantile Exchange will be launched, its work will begin with wheat trading,” Ashmawy said, as cited by the local Sada El Balad TV channel, adding that “the department for the supply of goods is a seller, and it will start trading with offers of Russian wheat.”

The official stressed that “the launch of a commodity exchange in Egypt will be a great addition to the country's trading system,” adding that the EMX is designed to ensure Egypt's “entry onto the global stage of commodity trading” and to help attract foreign capital to the country.

The exchange will also help “provide goods at a fair price, ensure the protection of small farmers, end monopolies in the industry and achieve price stability.”

It is expected that at the initial stage of the trading hub’s operation, a certain amount of imported wheat will be offered from its stocks at auctions twice a week.

READ MORE: Moscow clarifies conditions for extending grain deal

Egypt announced the establishment of the commodity exchange back in 2019, but its launch has been postponed. Earlier this year, Ashmawy said that cotton and gold may also be traded on the EMX.

Find more stories on economy and finance in TROIB business