Egypt’s net international reserves (NIRs) inched up slightly to $40.6 billion by the end of July, up from $40.5 billion in June, the Central Bank of Egypt announced on Wednesday.
In June, the International Monetary Fund (IMF) approved the final review for Egypt’s stand-by arrangement (SBA) programme, through which Egypt secured a loan of $5.4 billion to enhance its second wave of economic reforms.
In its report on the SBA programme, the IMF said it expects foreign direct investment (FDI) inflows to Egypt to jump to two percent and 2.5 percent of the GDP in FY2021/22 and FY2022/23, respectively, up from 1.4 percent in FY2020/21.
The IMF also noted that Egypt’s ability to repay its financial obligations is adequate, but risks remain, as uncertainty about global financial conditions and the concentration of repayment of obligations to the fund in FY2023/24 and FY2024/25 remain the key risks.
Improvements in the fiscal and external positions are expected to ensure Egypt's continued market access and adequate capacity to repay, according to the IMF.
Egypt is currently in negotiations with the World Bank to secure funds in order to support the second wave of the economic reforms that focuses on structural reforms, according to Minister of Planning and Economic Development Hala El-Said.