CAIRO: Egypt’s Net International Reserves rose by 0.3 percent registering $16.73 billion at the end of July, compared to $16.68 billion in June, according to the monthly statistical bulletin issued by the Central Bank of Egypt (CBE) Thursday.
In June 2014, Egypt’s net foreign reserves have witnessed large decline with total value amounted to $596 million registering 16.68 billion, compared to 17.2 billion in May. CBE attributed the decline in the net international reserve in June to the repayment of $700 million; a six-month premium on the foreign debt owed to the Paris Club, which Egypt has paid early July.
Ahmed Roshdy, former Chairman of the National Bank of Egypt, told The Cairo Post Thursday that rise is attributed to the relative increase in revenues from Egypt’s main sources of foreign currencies; tourism, Suez Canal and exports.
The recent hike at the interest rates on the Egyptian Pound has also contributed in the rise of the net international reserves, said Roshdy adding that he expects a huge challenge on the Egyptian foreign reserves during the upcoming phase, which will witness an intensive governmental plan to carry out development projects.
“The developmental projects will most likely increase Egypt’s import of machinery and will cause a consequent rise in the exchange rate of the U.S Dollar to the Egyptian Pound,” according to Roshdy.
Occupancy rates at Sharm el-Sheikh resorts during Eid al-Fitr edged higher to 100 percent for the first time since the January 25 Revolution, according to the Egyptian Tourism Authority’s Ahmed Shokry in comments to CNBC Arabia Tuesday.
Moreover, the Egyptian Agricultural exports have witnessed leap since the beginning of current year reaching 2million tons with total value up to $1.5million, Al Masry Al Youm reported Tuesday.
Following the resignation of former President Hosni Mubarak in February 2011, foreign reserves witnessed a sharp decline from $35.8 billion by the end of December 2010 to $17.489 billion in April 2014, according to CBE data.
Meanwhile, the reserves saw slight recovery after former President Mohamed Morsi’s ousting in 2013 due to the $12 billion aid pledged to Egypt form Saudi Arabia, Kuwait, and the United Arab Emirates.