Egypt’s international reserves jump to 40.9 bln by end of November: CBE

Doaa A.Moneim , Tuesday 7 Dec 2021

Egypt’s net international reserves (NIRs) rose by the end of November to $40.9 billion, up from $40.8 billion in October, the Central Bank of Egypt (CBE) announced on Tuesday.

File Photo: Central Bank of Egypt s headquarters seen in downtown Cairo, Egypt. REUTERS

After dropping significantly to $36 billion, from $45.5 billion, owing to the COVID-19, Egypt’s NIRs started to recover in June 2020.

Egyptian expat remittances jumped 10.2 percent during the first seven months of 2021, reaching $18.7 billion, up from $17 billion during the corresponding period of 2020, CBE announced in October.

Also in October, Fitch Ratings maintained Egypt's long-term foreign-currency issuer default rating (IDR) at 'B+' with a stable outlook.

In its report, Fitch said that Egypt's ratings are supported by its ongoing fiscal and economic reforms as well as its large economy, which has demonstrated stability and resilience through the global health crisis.

In an interview with Ahram Online published in October, Azour said that Egypt has experienced a strong return of portfolio inflows after the disruptive conditions in March-April 2020 amid the first wave of the pandemic, adding that this was testimony to the authorities’ deft management of the COVID-19 crisis.

“Going forward, these flows are expected to return to more steady-state levels, closer to pre-COVID-19 levels, thanks to the authorities’ continued structural reform efforts, the country’s inclusion in the J.P. Morgan index as of January 2022, and other ongoing reforms to widen the investor basis,” Azour added.

Azour also projected FDI inflows to the Egyptian market to increase in the coming period, albeit with large uncertainty as the global economy continues to be affected by the COVID-19 pandemic.

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