EGYPT’S FOREX RESERVES HIT 36 BILLION USD, HIGHEST SINCE MUBARAK’S OUSTER

Egypt’s foreign currency reserves reached 36.036 billion U.S. dollars, as end of July, compared to 31.3 billion at the end of Jun, the Central Bank of Egypt (CBE) said in a press release.

The foreign reserves also stood at about 36 billion dollars in Jan, 2011, right before the eruption of mass protests that ousted former President, Hosni Mubarak, since then, it was on the decline.

Investment inflows, during July 2017 alone, reached 7.7 billion dollars, while the country received 1.25 billion, as the second tranche of a 12-billion-dollar loan from the International Monetary Fund (IMF).

Over the past few years, Egypt has been suffering an economic recession, due to political instability and relevant security issues, that led to the decline of tourism, foreign currency reserves and foreign investments.

Prime Minister, Sherif Ismail, told reporters that, the rise of foreign currency reserves to exceed 36 billion dollars is “good news,” describing it as a positive step in the country’s economic reform plan.

“It is a message of reassurance about the Egyptian economy,” said the Egyptian prime minister, adding that, “It also means that the Egyptian economy is recovering, in terms of available foreign currency, to meet the needs of the state and the investors.”

Besides floating its local currency’s exchange rate, to face dollar shortage, Egypt started, last year, a three-year economic reform programme, including austerity measures, fuel subsidy cuts and tax increase.

The programme is encouraged by an IMF 12-billion-dollar loan, a third of which has already been delivered to Egypt, in two tranches, in Nov, 2016 and July, 2017

Source: NAM News Network