CAIRO: The Central Bank of Egypt (CBE) announced Wednesday that Egypt’s foreign reserve noted 0.43 percent increase by the end of April, worth $17.489 billion compared to $17. 414 billion by the end of March, according to the CBE’s statistical bulletin published in its homepage.
Egypt’s foreign reserves declined sharply from $37 billion in 2011 to $13.6 billion due to the political and economic turmoil following the resignation of former President Hosni Mubarak, Al-Bawaba news gate reported.
Egypt’s foreign reserves witnessed slight recovery after the ousting of Muslim Brotherhood Mohammed Morsi due to the $12 billion aid from Saudi Arabia, Kuwait, and United Arab Emirates.
Foreign reserves are used to repay Egypt’s foreign debts along with providing the needed liquidity for importing necessary goods.
In his meeting with the Prime Minister Ibrahim Mahlab, CBE governor Hisham Ramez announced that Egypt’s foreign reserve noted no changes by the end of April. It maintained the same level as March at $17.420 billion, up from $17.307 billion in February, according to The Cairo Post.
Former Head of Sadat Academy for Management Sciences Abdul Muttalib Abdul Hamid unveiled that the slight increase of foreign reserves is considered a positive indicator of economic recovery and an actual growth in money supply after the harsh fluctuation that followed the January 25 Revolution and June 20 Demonstrations, Abdul Hamid told The Cairo Post.
According to the balance of payment, the foreign reserves include two main aspects receipts of the foreign reserves and the dept, he said and that they are represented in the financial receipts of tourism, foreign investment, and the money remittances of Egyptian abroad.
“There is positive relationship between the foreign reserves and the value of the Egyptian pound,” Abdul Hamid said, expecting that the Egyptian Pound will soar at the exchange market over the increase of foreign reserves.
Abdel Hamid unveiled that the January 25 Revolution and June 30 Demostrations greatly affected the foreign reserves, which declined to $13.5 billion from about $37 billion due to the large decline in tourism sector’s receipts from 13 billion EGP to only two billion EGP.
For the upcoming period, Hamid expects Egypt will witness tangible recovery in economy and the foreign reserves after the upcoming presidential election scheduled on May 26 and 27, especially since the two presidential candidates Hamdeen Sabbahi and Abdel Fatah al-Sisi put the economy sector on their top priorities, he said.
Additional reporting by Yasmine Samrah.