Egypt’s central bank increases international reserves slightly in October

Ahram Online , Sunday 5 Nov 2023

The Central Bank of Egypt (CBE) revealed a slight uptick in international reserves, climbing to $35.1 billion in October from $34.97 billion in September, according to data released on Sunday.

The Egyptian Central Bank in Cairo, Egypt.
The Egyptian Central Bank in Cairo, Egypt. AP


Of the CBE's international reserves, approximately $8.1 billion is in gold, $26.63 billion in foreign currency, and $371 million in special drawing rights (SDRs). These SDRs constitute an international reserve asset established by the International Monetary Fund (IMF) to bolster the official reserves of its member countries.

Egypt has recently bolstered its foreign currency reserves through the issuance of $1 billion in yen-denominated bonds in August and another $500 million in yuan-denominated bonds in October, with further yen-denominated bonds in the pipeline.

Under a loan agreement, the Central Bank of Egypt (CBE) secured ¥7 billion ($956.61 million) from the state-run China Development Bank.

Egypt is actively pursuing additional funding to bridge a projected $17 billion financing gap by 2026, from which $6-8 billion needs to be covered in FY2023/2024.

The country also aims to acquire more hard currency to fulfil its commitment to the IMF under a four-year $3 billion loan programme, which mandates a series of economic reforms, including the adoption of a flexible exchange rate.

With a total external debt of $165.3 billion, Egypt faces debt service payments totaling $71.6 billion over the next three years, including $29.23 billion due in 2024.

As of August, Egypt's foreign assets deficit stood at nearly $25.92 billion. The country targets an annual collection of $191 billion in US dollar revenues by 2026.


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