Kuwait reportedly extending $4B deposit, part of support for Egypt’s FX reserves

Cairo – November 13, 2023: Anonymous sources have revealed that Kuwait will extend the maturity of its $4 billion deposit at the Central Bank of Egypt (CBE) to maintain Egypt’s international reserves, according to Ashraq Business.

Kuwait’s $4 billion deposit consists of two tranches, worth $2 billion each, with one to be extended until April 2023 and the other due on September 2024.

In its latest report, the CBE revealed that Egypt’s international reserves currently stood at $35.1 billion in October. Egypt is looking to attract $25 billion in foreign direct investments (FDIs) within the next 5 years.

To close a projected financing gap of around $17 billion by 2026, Egypt is looking to attract fresh foreign currency, including a target of $6-8 billion by the end of FY2023/2024. The CBE added that the country’s external debt declined to about $164.7 billion at the end of June 2023.

Support from Gulf countries has played an important role in maintaining Egypt’s reserves, with deposits from Saudi Arabia, the UAE, and Qatar to the central bank reaching around $29.9 billion. The countries have also expanded investments in various companies throughout recent years.

In its previous report, the CBE explained that Saudi Arabia’s deposits in the CBE stands at $10.3 billion, of which $5 billion are short-term deposits, and $5.3 billion are medium- and long-term deposits.

The UAE’s CBE deposits currently amount to around $10.65 billion, of which $5 billion are short-term deposits, and the rest are medium and long-term deposits. At the CBE, Qatari deposits are worth $4 billion.