foreign currency
These foreign reserves are backed by a basket of major currencies: the US dollar, Euro, British pound, Japanese yen, and Chinese yuan.
The Central Bank of Egypt (CBE) has reportedly directed banks, for the first time in two months, to allocate dollars for letters of credit (LC) related to the importing of non-essential goods requiring pre-approval.
Following the $35 billion Ras El Hikma deal earlier in the year, Egypt's net foreign reserves escalated by $11.2 billion over the last 5 months, providing the central bank with a substantial cushion for floating the pound.
Madbouly noted that this movement of capital was largely due to Egypt's flexible exchange rate policy, which allowed for high-value withdrawals, according to Reuters
Foreign currency reserves dipped slightly from $36.9 billion in June to $36.3 billion last month.
Egypt’s slow but steady NIRs growth, despite paying off large sums of outstanding debt, reflects a positive trend in the economy’s recovery.
Previously, Fitch Ratings had predicted that Egypt's foreign currency reserves would reach $49.7 billion in FY2023/2024 and $53.3 billion in FY2024/2025.
In an official statement, Madbouly also stated that Egypt is working with the UAE to waive an Emirati deposit of $6 billion in the Central Bank of Egypt (CBE) and convert it to Egyptian pounds
The narrowing of the deficit reflects the surge in foreign currency reserves after the fresh inflows for FX from the Ras El Hekma deal and the depreciation of the Egyptian pound
This marks a significant increase from the bank's former highest limit of LE 20,000
Reportedly received by Egypt on Sunday, the tranche consisted of $14 billion and $6 billion currently held from a previous deposit by the UAE at the Central Bank of Egypt (CBE)
Starting from Sunday, Egyptians across the country will be able to purchase bread at reduced prices from private bakeries, ranging from LE 0.5 to LE 1.5 per loaf, in accordance with government directives.
The Prime Minister revealed that a significant quantity of goods and merchandise will be released from the ports on the same day.
Previously, individuals who obtained credit cards issued on or after December 21, 2023, were required to wait a minimum of six months before engaging in foreign exchange (FX) transactions
BM’s new debit card will have a daily limit of $5,000 for purchasing outside Egypt, with a monthly cutoff of $20,000
Al Baraka Bank Egypt and EG Bank announced new restrictions on foreign currency transactions on Tuesday through their respective websites, following Abu Dhabi Islamic Bank (ADIB) and CIB’s new limitations released last Thursday
This is in line with the government’s efforts to attract foreign currency amid an FX shortage that has impacted several sectors
The WB’s report highlighted that the MENA region’s remittances are projected to fall by 5.3% to approximately $61 billion in 2023, following a 4.5% drop in 2022
Minister of Finance, Mohamed Maait, shared that the new value-added tax (VAT) in foreign currency does not apply to imports, mitigating some importers’ concerns over the latest amendments to the tax law
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.
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