Egypt’s forex reserves hit 9-month high

Egypt’s forex reserves hit 9-month high
Egypt’s net foreign reserves rose to $40 billion in December 2020, the largest since the outbreak of the coronavirus disease pandemic. (File/AFP)
Updated 07 January 2021
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Egypt’s forex reserves hit 9-month high

Egypt’s forex reserves hit 9-month high
  • Foreign reserves had dropped since March from a previous high of more than $45 billion
  • The Central Bank of Egypt said on its website that the new reserves amounted to $40.62 billion, compared to $39.221 billion in November 2020

CAIRO: Egypt’s net foreign reserves rose to $40 billion in December 2020, the largest since the outbreak of the coronavirus disease pandemic, according to figures issued by the country’s central bank.
Foreign reserves had dropped since March from a previous high of more than $45 billion. The Central Bank of Egypt said on its website that the new reserves amounted to $40.62 billion, compared to $39.221 billion in November 2020.
Informal reserves also increased in December by $1.2 billion to $11.04 billion, the highest since March 2020.
The central bank said that foreign currency balances rose to $35.399 billion at the end of December compared to $35.035 billion at the end of November, while gold balances increased to $4.39 billion compared to $4.082 billion, and special drawing rights rose to $279 million in comparison to November’s $110 million.
This is the highest level of official reserves in nine months, and the seventh increase in the reserves in a row. But overall foreign reserves witnessed a $5.360 billion decline during 2020 due to the pandemic.
All the losses came during the months of March, April and May of last year at the peak of the pandemic.
The reserves dwindled to $36 billion in May 2020 before recovering following agreements with international institutions, led by the International Monetary Fund and offering international bonds worth $5 billion and green bonds worth $750 million. The return of foreign capital inflows starting last June helped with the recovery.
The Pharos Holding For Financial Investments said in its annual report that the net international reserves are likely to reach $43 billion during the current fiscal year.