Egypt foreign reserves plunge by $860m, rate of depletion grows
Monthly fall in the country's incoming is far higher than over the last two months but compares well to the $2 billion lost between March and April
Ahram Online, Sunday 7 Aug 2011
Egypt's Central Bank (CBE) has announced the country's foreign reserves fell to US$25.7 billion at the end of July, down from $26.56 billion in June, a decline of $860 million.
This fall is higher than previous declines of $660m between May and June, and $800m between April and May.
However, the rate is highly favourable when compared to plunges earlier this year, whereas reserves dropped $2 billion between March and April.
Foreign reserves have plummeted $10.3 billion since January as a consequence of the fall in revenue from vital sources of overseas currency, such as tourism and foreign investment.
According to Hisham Ramez, CBE's deputy governor, Egypt needs around $51 billion of foreign currency to cover its annual needs, which translate to $4.25 billion monthly.