Foreign currency inflows to banks reach $75B

CAIRO – 4 April 2018: Foreign currency inflows to banks operating in Egypt have risen to more than $75 billion since the flotation of the Egyptian currency in November 2016, Deputy Governor of the Central Bank of Egypt, Ramy Abul-Naga, told Egypt Today.

The central bank announced Monday that Egypt’s foreign reserves increased by $100 million by the end of March 2018 to reach $42.6 billion, as compared to $42.5 billion by the end of February 2018.

Egypt floated its currency in November 2016, before it clinched a $12 billion loan from the International Monetary Fund (IMF).

The IMF loan helped the state’s foreign reserves to rebound by receiving the first three tranches of the loan with a total value of $6.08 billion.

The $2 billion fourth tranche will be received by Cairo after concluding the program’s third review in June.

The current average of foreign reserves covers about eight months of Egypt's commodity imports, which is higher than the global average of about three months of Egypt's commodity imports, thus ensuring Egypt's commodity and strategic needs.

Egypt imports goods and products with an average of $5 billion monthly, with an annual total of more than $60 billion.

Foreign currencies of Egypt’s foreign reserves include the U.S. dollar, Euro, Australian dollar, Japanese yen and Chinese yuan.

The main function of the foreign exchange reserve, including its gold and various international currencies, is to provide commodities, repay the installments on the interest rates of external debt, and to cope with economic crises.