Egypt's foreign reserves rise to $31 bln in May, highest since 2011

Ahram Online , Sunday 4 Jun 2017

Egypt's foreign reserves edges up to $31.125 billion at the end of May (File photo: Reuters)

Egypt's foreign reserves edged up to $31.125 billion at the end of May, nearing pre-2011 reserves, which were estimated at $36 billion.

The reserves, which have increased from $28.641 billion at the end of April, have been climbing since Egypt signed a three-year $12 billion loan from the International Monetary Fund (IMF) in November.

The IMF has endorsed Egypt’s economic reform programme, which includes cutting subsidies, raising taxes as well as floating the pound

In November 2016, Egypt received an initial $2.75 billion tranche from the IMF, with a second tranche expected this month.

In March, Egypt received the second $1 billion tranche from a $3 billion World Bank loan, as well as the second $500 million tranche from a $1.5 billion loan from the African Development Bank (AfDB).

The popular uprising that toppled former president Hosni Mubarak in 2011 led to a period of political turmoil that dried up Egypt's vital sources of foreign currency, such as tourism and foreign investment. 

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