Egypt’s foreign reserves rose by $18B since float: CBE

CAIRO – 4 February 2018: Egypt’s foreign reserves rose by some $18 billion in 14 months, or since the country floated its currency in November 2016, to record $37 billion in December 2017, compared to only $19 billion in October 2016, according to the Central Bank of Egypt (CBE).

Since the float, Egypt’s economic indicators have gradually started to improve and the country’s once-thriving black market has been eliminated, official sources said Saturday.

The float also prompted investors to consider investing in many sectors in the country as well as investing in the government debt, which stood at $19.5 billion since flotation.

The float has further helped local banks to increase their foreign currency balances, ending the repatriation of profits crisis that crippled business.

Egypt has embarked on a bold economic reform program in 2014 that included cutting energy subsidies and introducing new taxes, with the aim of trimming the budget deficit.

The country’s foreign reserves have been increasing since it clinched a $12 billion three-year loan from the International Monetary Fund (IMF) in November 2016, restoring confidence in the Egyptian market.

Reserves were only $19.041 billion at the end of October 2016, just before Egypt floated its local currency in November, which was a milestone in the IMF-backed economic reform program.