Egypt’s international reserves inched up slightly to $40.93 bln in December: CBE

Doaa A.Moneim , Wednesday 5 Jan 2022

Egypt’s net international reserves (NIRs) rose slightly in December to reach $40.93 billion, up from the $40.90 billion recorded in November, the Central Bank of Egypt (CBE) announced on Wednesday.

international reserves

The slight rise came as a result of an increase in the country’s gold reserves in December, reaching $40.94 billion, up from the $40.91 billion recorded in November.

It can also be attributed to the rise in special drawings reserves, which recorded $4.228 billion, up from November’s $4.222 billion, according to the CBE.

Foreign currency reserves also jumped in December to reach $34.05 billion, up from the $34.03 billion reached in November.

Furthermore, Egypt’s NIRs are expected to jump to $43 billion by the end of the first quarter (1Q) of 2022, according to Trading Economics (TE).

Over the long term, TE projects Egypt’s NIRs to trend around $46.5 billion in 2023, which exceeds pre-pandemic levels, when Egypt recorded $45.5 billion in February 2020.

As a result of the severe impacts of the pandemic globally and locally, Egypt’s NIRs dropped significantly in March 2020 to below $40 billion.

The COVID-19 pandemic has caused the sharpest portfolio flow reversal on record for emerging markets, including the Egyptian market, according to the CBE.

In June 2020, Egypt’s NIRs started to bounce back for the first time since March.

Additionally, Egyptian expats’ remittances rose in the 2Q of 2021 to $80.5 billion, up from the $78.4 billion posted in the 1Q of the year, according to the CBE.

During the current FY2021/2022 — which will conclude by the end of June — expats’ remittances increased by 1.5 percent during the 1Q (June-August 2021) to reach $8.1 billion.

Moreover, from January to September 2021, total remittances posted $24 billion.

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