São Paulo – The São Paulo Stock Exchange (BM&FBovespa) and the Egyptian Exchange (EGX) signed a memorandum of understanding this Thursday (3) for mutual cooperation and information sharing across several areas of business.
The deal was signed by BM&FBovespa CEO Edenir Pinto and EGX chairman Mohamed Omran during a World Federation of Exchanges (WFE) meeting in Cartagena, Colombia.
BM&FBovespa said in a press release that the deal will open up a new range of opportunities to both companies by enabling the development of deals, products and markets through knowledge and information-sharing.
The parties will also work to spread information and education through shared programs on capital markets, securities and derivatives, etc.
Edenir Pinto was quoted as saying the memorandum is a major step towards mutual support for capital markets in Brazil and Egypt. “It is in line with an increasingly global market. This collaborative effort is geared at developing both countries’ markets by uncovering opportunities that are beneficial to both.”
Omran believes the deal complements the Egyptian Exchange’s strategy of increasing exchange with global stock markets and diversifying its relations away from Egypt’s traditional markets, like those in Africa, Europe, and the Middle East. “We look forward to a long and fruitful collaboration with BM&FBOVESPA for the benefit of both exchanges, and aim to list index or ETF (exchange-traded fund) products that would provide new investment alternatives to investors in both markets,” he said, also in a press release.
The signing of the deal comes on the same day that the Central Bank of Egypt moved to float the exchange rate, in a bid to counter a dollar shortage and draw in foreign investment. After the move was announced, the main EGX index closed up 3.4%.
*Translated by Gabriel Pomerancblum
