(Bloomberg) -- Egypt signed contracts to hedge against price fluctuations for a large number of petroleum products, Prime Minister Mostafa Madbouly said at a news conference.
He didn’t provide further details, but Egypt is one of a small handful of sovereign states that are active in the oil derivatives markets to protect against major swings in prices that can be harmful to the domestic economy.
The government, which is emerging from its worst foreign currency crisis in decades, has repeatedly voiced concern about instability in the region, as well as globally, and its potential impact on the economy.
Egypt generally locks in the price of its oil imports, and has been active in the market previously. It announced an oil hedge at a similar time last year. Traders and brokers active in the market said the country has purchased call options when it has been hedging in the past.
--With assistance from Tarek El-Tablawy and Devika Krishna Kumar.
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