Egypt’s external debt rose to $129.1 billion in the second quarter (2Q) of the current FY2020/2021, which concludes by the end of June, up from $125.3 billion recorded in the first quarter of the year and $123.4 billion by the end of FY2019/2020, according to recent data published by the Central Bank of Egypt (CBE).

Total long-term debt increased in the 2Q of FY2020/21 to reach $117.2 billion, up from $113 billion in the 1Q of the fiscal year and $112.6 posted by the end of FY2019/20, according to the CBE.

On the other hand, total short-term debt declined to $11.9 billion in the 2Q of FY2020/21, down from $12.3 billion in the 1Q of the fiscal year, but up from $10.8 billion recorded by the end of FY2019/20, according to the CBE.

The data also showed that the government’s total external debt increased in the 2Q of FY 2019/20 to reach $77.2 billion, up from $73.1 billion in the 1Q of the fiscal year and $69.3 billion by the end of FY2019/20.

The government’s total short-term external debt stands at $2 billion in the 2Q of FY2020/21, which is the same level of the 1Q of the fiscal year, according to the CBE.

As for the local scene, the CBE said that domestic liquidity rose by the end of April to record EGP 518.4 billion, up from the EGP 5.1 trillion posted by the end of March and EGP 4.9 trillion recorded by the end of 2020.

On Egypt’s net international reserves (NIRs), the data showed that they recorded $40.3 billion by the end of April — the same level recorded by the end of March — up from $40.2 billion posted by the end of February.

This included an increase in total gold reserves by the end of April to reach $4.1 billion, up from $3.9 billion by the end of March, according to the CBE.

By the end of April, foreign currency reserves posted $36 billion, the same level recorded by the end of March, according to the CBE.

Previously, the CBE said that the pandemic has caused the sharpest portfolio flow reversal on record for emerging markets, including the Egyptian market.

Accordingly, Egypt’s NIRs dropped significantly to $36 billion in March 2020, down from its record of $45 billion posted prior to the pandemic.

NIRs started to bounce back for the first time since March, rising to $38.2 billion in May 2020.

The CBE’s Monetary Policy Committee is anticipated to hold its fourth meeting in 2021 on 17 June to review the key interest rates.

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