Tarek Amer, Governor of the Central Bank of Egypt (CBE). Tarek Amer, Governor of the Central Bank of Egypt (CBE). Daily News Egypt

Egypt's Foreign Reserves Climbs to 31.18 Billion EUR Featured

News Reports / Friday, 09 February 2018 03:01

Egypt’s foreign currency reserves achieved a new high of 31.18 billion EUR. This was confirmed in a press statement released yesterday by the   by the Central Bank of Egypt (CBE). The figure represents an increase of  970 million EUR, when compared to the 30.22 billion EUR declared as valuation of the  country's hard currency reserves  at the end  of December 2017.  In January of the current financial year, according to the CBE statement,  the  value of gold in reserves appreciated to 2.29 Billion EUR, from the 2.18 billion EUR  recorded in December,  2017. Also in the newly released report,  Special Drawing Rights (SDRs),  was valued favourably at  627.69 million EUR. Registered International Monetary Fund’s (IMF) to the country remains unchanged, at 19.59 million EUR, as compared to CBE’s December 2017 report. The statement indicates that Egypt can  finance eight months of imports, five months in excess of the minimum three-month global ceiling demanded by international creditors to guarantee guarantee a country's import bills.

The healthy state of Egypt’s finances may be appreciated in view of the fact that the 970 million EUR increase in CBE’s foreign reserves comes on the heels of a transfer worth 571.37 million EUR, as debt servicing obligation to the Paris Club in January. Under agreed terms, Egypt’s obligation to the Paris Club, its most important creditor, is undertaken in two tranches bi-annually (in January and June). This suggests that aside from the one coming up in June, Egypt is done with large scale fund transfer from its central bank's vault for the year. Thus, the country’s credit rating looks bright. The progress recorded may be attributed to the CBE’s decision to float Egypt’s local currency in November 2016. The country’s foreign reserves have increased by 15.50 billion EUR since the floating of the Egyptian pound. 



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