Egypt’s foreign reserves softly up to $16.4B at Oct-end
Central Bank of Egypt -YOUM7 (Archive)

CAIRO: Egypt’s net international reserves posted a moderate rebound from a three-month slip to hit $16.415 billion at October-end, marking an $80 million rise from $16.335 billion a month earlier, the central bank announced Wednesday.

Global credit rating agency Moody’s Investors warned earlier last month that “the drop (of Egypt’s foreign reserves) reflects continued dependence of Egypt’s balance of payments on external donor support, which is credit negative for the country’s external liquidity position.”

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 in2011 which toppled Former Minister Hosni Mubarak, 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 received a boost and jumped to $20.5 billion upon receiving $6 billion worth of deposits from Saudi Arabia, Kuwait and United Arab Emirates.

The Gulf allied 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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