Egypt's net foreign reserves fell to $16.35 billion by the end of January 2012, down some $1.77 billion on the previous month, a statement on the Central Bank of Egypt's website said on Tuesday.

The country's reserves stood at $18.12 billion at the end of December.

"The outflow is constant while inflows decreased, as was expected. A member of the military predicted similar figures some months ago,” said Hani Guenena, head of research in Pharos investment bank. 

He explained that government and public entities have debts to repay, in addition to a large and widening trade deficit.

In fact, increase of exports and Suez Canal revenue did not compensate for the decrease in tourism revenue and direct foreign direct investments.

"Tourism revenues were again affected after the events of the cabinet sit-in and other violent events. The same reasons that affected Egypt’s foreign reserves persist.”

In 2011, tourism revenue slipped $4 billion to $9 billion, compared to $13 billion a year earlier. Foreign direct investments were negative during the first quarter of 2011 and significantly below average since then.

An increase of export income to $21 billion during the first nine months of 2011, from $18.5 billion during the same period of the previous year, and of Suez Canal revenue, has not compensated for the decreasing amounts from the other two chief sources of foreign currency in Egypt.

Egypt’s total reserves fall by half in 2011. Just before the revolution erupted, the Central Bank stored around $36.01 billion.