CAIRO: The steady drop of Egypt’s international foreign reserves is “credit negative,” according to a report released by Moody’s Monday.
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.
In July, before the slip, Moody’s Investors Service changed the outlook for Egypt’s banking system to stable from negative, “reflecting its expectation that banks’ funding and liquidity positions will remain strong amid improving operating conditions over the next 12-18 months.”
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.
Further details to follow.