Results of Market Consultation | Egypt FX Rate | March 2024

Solactive invited all stakeholders and interested third parties to provide input regarding the Egypt FX rate that is currently being used for Egyptian stocks held in the composition of indices calculated by Solactive: https://www.solactive.com/market-consultation-egypt-fx-rate-february-2024/.

The result of the consultation was mixed with the majority of respondents calling for no change or representing that the NDF proposal was not solving the issue.

It was also cited that the improvement in market conditions since the consultation was triggered, allowing for the EGP rate to float freely has reduced the need for Solactive to take action – while the lack of liquidity is still a concern.

As of 21st March 2024, the current market mid-price has reduced to 46.65 and the discussed 1-year NDF is priced at 54.2. 

It is the decision of Solactive at this time to take no action and to continue to price indices using the prevailing spot FX rates, Solactive will continue to monitor the situation closely. The consultation results will also be considered as input for the next annual country classification framework review, due in September.