Egyptian Former prime minister Hazem El-Beblawi (L) and UAE minister of state for foreign affairs Mohamed Anwar Qarqash (Photo: Al-Ahram Arabic news website)
Egypt’s balance of payments (BOP) recorded its largest surplus in 17 years during the first three months of the current fiscal year.
The financial bulletin in March, issued by the finance ministry, showed that the record BOP surplus was derived mainly from a meteoric rise in capital inflow and foreign direct investment (FDI) registered in the capital and financial accounts.
BOP registered a surplus of $3.7 billion in the period from July to September 2013 as opposed to a deficit of $0.5 billion year on year.
Both the current account and the capital and financial accounts achieved surpluses during this period at a value of $800 million and $4 billion respectively.
Despite falling tourism revenues, the current account was able to achieve a surplus due to grants received from Gulf states in the three months following the removal of Muslim Brotherhood president Mohamed Morsi.
During this period, Egypt received $1 billion from the United Arab Emirates in cash, $2 billion in the form of oil shipments, and $1.3 billion in grants from several countries.
Tourism receipts plummeted 65 percent, depicting a $2 billion drop in revenues in the first quarter of the current financial year in comparison to the prior year.
The capital and financial account, was able to achieve significant gains as Egypt’s securities portfolio received $1.3 billion and net FDI inched 7 percent to register $1.2 billion.