Egypt’s foreign reserves tumble further to $16.3B in September
U.s.dollar - AFP/Shawn Thew

CAIRO: Egypt’s net international reserves plunged for a third straight month to hit $16.33 billion at September-end, marking a $1.76 billion decline from $18.09 billion a month earlier, the Central Bank of Egypt (CBE) announced Wednesday.

Egypt’s foreign reserves saw a severe shortfall over the past four years as tourism revenues and foreign direct investments tumbled over political turmoil following the January 25 Revolution which toppled Former Minister Hosni Mubarak in 2011, when they were valued at $35.8 billion.

The foreign reserve allows the government to purchase basic commodities, such as wheat and petroleum products, and to pay off premiums and interest on foreign debts.

At April- end, the reserves had surged to $20.5 billion upon receiving $6 billion worth of deposits from Saudi Arabia, Kuwait and United Arab Emirates (UAE) in April 2015.

Gulf countries promised a total of $12.5 billion in aid and investments to Cairo during the three-day economic summit held in Sharm el-Sheikh March 13-15.

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