Ibrahim Ashmawy, head of the Internal Trade Development Authority (ITDA), said that the government aims to launch the Egyptian Commodity Exchange in the first quarter (Q1) of next year.
The Commodity Exchange has been established within the framework of the state’s plan to develop internal trade. He pointed out that trading in any commodity exchange ranges between three to four years, according to MENA.
He added that a twinning contract will be signed with the Belarusian Commodity Exchange to benefit from its expertise in databases and membership requirements in the commodity exchange, as well as commission rates of trading volume and company registration requirements.
Ashmawy explained that the Belarusian Commodity Exchange has a turnover of about $2.3bn annually, and several thousand companies are part of it.
He noted that the commodity exchange is not only an agricultural commodity exchange, but also includes other commodities, pointing out that the commodities that to be traded include iron, cotton, gold, grains, frozen poultry, and sugar.
Moreover, he said that the commodities to be traded on must be stored, and the merchandise insured. Listed companies are also required to have a good reputation and financial suitability, as well as large transactions volume and financial solvency.
Ashmawy stressed that the commodity exchange will encourage small traders to enter the organized trade system, which will be evident in the prices of commodities to consumers and producers, especially with the reduction of commodity trading among brokers.
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