CAIRO – 21 July 2024: In a meeting between Sherif Farouk, the Minister of Supply and Internal Trade, and Mohamed Farid, the Chairman of the Financial Regulatory Authority (FRA), strategies were discussed to enhance the effectiveness of the commodity exchange and its contribution to the economy.
The primary focus of the discussion was to leverage the forces of supply and demand in order to activate the commodity exchange. This approach would empower traders to effectively manage the risks associated with price fluctuations through hedging techniques.
The importance of conducting transactions in accordance with market mechanisms was emphasized, with the goal of achieving transparency and clarity at the highest levels.
The discussions also highlighted the necessity of establishing strong foundations and standards that facilitate the trading of commodity derivatives. Both parties explored the possibility of utilizing the FRA's accumulated expertise to enhance the efficiency and competitiveness of the commodity stock exchange.
Furthermore, they deliberated on activating the role of the commodity stock exchange to increase competitiveness and promote fair competition in the markets. Transparent pricing of commodities for all market participants was deemed crucial, with the aim of reducing trading complexities through the exchange's electronic platform.
Farid expressed his commitment to fostering various forms of cooperation with the Ministry of Supply, as part of the FRA's efforts to integrate with different state institutions and support the achievement of economic and social development plans.
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