Latest news with #foreignCurrency
Zawya
08-07-2025
- Business
- Zawya
Foreign currency sukuk issuances could reach up to $80bln in 2025: S&P
Foreign currency-denominated sukuk issuances could reach $70-$80 billion in 2025, aided by the US Fed's expected interest rate cuts, according to S&P Global. Foreign currency issuances increased by 9% in the first half of 2025 to $41.4 billion from $38 billion in 2024, underpinned by strong activity in the UAE, Bahrain, and Kuwait, the ratings agency said. The growth came despite volatility in international capital markets following the proposed reciprocal tariffs by the US government and slower-than-initially-expected monetary easing. Significant financing needs in core Islamic finance countries supported sukuk issuances due to lower oil prices and fiscal deficits, S&P added. Although Saudi Arabia reported a slight decline in issuances, the issuers contributed 38.9% of the market volume in the first half of the year. Many issuances came from banks as they continued to fund Vision 2030 initiatives. A similar trend emerged in the UAE, where financial institutions and corporates capitalised on conducive economic conditions to raise funds. In contrast, lower local currency issuances in core Islamic finance countries caused global sukuk issuance to fall by about 15% in the first half of 2025 to $101.3 billion from $119 billion a year ago. S&P expects local currency issuance to remain subdued, mirroring the liquidity conditions in some core markets and lower financing needs due to good fiscal performance in other markets. The outlook for foreign currency-denominated sukuk issuances in the second half of 2025 will depend on the evolving geopolitical situation in the Middle East, according to S&P. 'Since we don't expect a full-scale regional war, we think the resilient foreign currency issuance trends observed in the first half will continue,' the ratings agency said. Sukuk will remain a key financing tool for core Islamic countries that rely heavily on oil revenue, S&P said. 'We assume oil prices will average $60 for the remainder of 2025 and $65 for 2026 and that the market's oversupply will continue to outweigh demand from 2025.' (Editing by Bindu Rai)
Zawya
07-07-2025
- Business
- Zawya
Ethiopia looks to natural gas to fuel its growth
Ethiopia says it will start exporting natural gas, part of a turnaround plan for an economy weighed down by shortage of foreign currency. Prime Minister Abiy Ahmed told parliament on Thursday that his administration would begin its first-ever gas export 'in the near future,' which would mark a milestone in the nation's economic transformation. Dr Abiy said the country had previously attempted to explore and export natural gas during the tumultuous DERG regime and before, but none of those efforts came to fruition. Now, Ethiopia has partnered with new companies for gas exploration, he added.'Following the completion of the first phase, the second phase of the gas project will also be launched in due course,' he said. Dr Abiy's announcement comes after the country indicated in its Energy Outlook report of May that the government had cancelled the planned natural gas extraction in the Ogaden region, and a pipeline project to Djibouti for export as LNG, due to 'challenges in securing project financing and slow project implementation contributed to this decision.''This cancellation limits Ethiopia's ability to generate revenue from natural gas exports and diversify its energy sources. Use of domestic natural gas would increase CO2 emission, but could be a relevant option to balance generation in dry years and reduce the need for fertiliser imports,' the Water and Energy ministry said. According to the new report, Ethiopia is currently extracting coal for industrial use.'The future role of natural gas in Ethiopia's energy mix will depend on the feasibility of new extraction and distribution projects, alongside economic and geopolitical considerations,' the report says.'Natural gas could potentially be used to compensate for the missing generation from hydro in dry years,' the new report says. Ethiopia has significant oil and natural gas potential in the Ogaden Basin, especially Calub and Hilala fields. The Ministry of Mines wants to work with Ethiopian Electric Power to integrate natural gas into electricity generation. The country is dependent on imported petroleum products, with current costs in excess of $4 billion annually. The policy will focus on natural gas exploration and prioritise development of the sector to open the area for companies and to encourage investments. It relies on renewable energy sources for electricity, with hydropower contributing over 90 percent of the country's supply. Major projects such as the Grand Ethiopian Renaissance Dam (GERD), with a capacity of 5,150 MW, and the Koysha Hydroelectric Power Plant, with a capacity of 1,800 MW, are crucial for meeting the growing demand for electricity. The GERD is currently producing 2,350MW and is planned to reach full capacity within a year. In addition to hydropower, wind farms such as Adama and Aysha contribute to the national grid. The country also has significant untapped solar and geothermal potential. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Bloomberg
28-05-2025
- Business
- Bloomberg
Taiwan Considers Easing Rules for Insurers After Currency Swings
Taiwanese insurers are facing difficult questions about the damage of recent swings in the local currency. Regulators may have a partial solution: letting firms change how they calculate the value of foreign currency assets. The island's financial regulator is considering allowing insurers to use six-month average exchange rates when they calculate risk-based capital in their semi-annual reports, a shift from the current system where insurers use exchange rates on the final day of reporting.
Zawya
23-05-2025
- Business
- Zawya
China to allow more flexible use of money raised via overseas share sales
China published draft rules on Friday to allow overseas-listed Chinese companies to use share sale proceeds more flexibly, in a bid to promote offshore listings. Funds raised from overseas listings that are remitted back to China in foreign currencies can be voluntarily converted into yuan and used at the company's discretion, China's central bank and forex regulator said. Regulators will also streamline registration process for offshore share sales, according to the rules. (Reporting by Beijing and Shanghai newsroom; Editing by Aidan Lewis)
Reuters
22-05-2025
- Business
- Reuters
Russia extends mandatory sale of forex revenue by exporting companies
MOSCOW, May 22 (Reuters) - The Russian government said on Thursday that it had extended until April 30, 2026 a requirement for major exporters to sell a certain proportion of their foreign currency earnings. Major exporters must repatriate at least 40% of their foreign currency earnings and sell at least 90% of the repatriated earnings on the domestic market from May 25, the government said.
