The Central Bank of Egypt had reserves totaling USD 24.3 bn at the end of 2016, after adding USD 1.2 bn to the balance recorded in November and registering the highest balance since August 2011. Last week we speculated the central bank would manage to surpass Governor Tarek Amer’s verbal target of USD 25 bn and CI Capital economist Hany Farahat says it is basically there. “The rise is strong and noticeable and would cover imports for more than five months … The rise in reserves will restore confidence in the central bank's ability to restore stability in the foreign exchange market," Farahat told Reuters. Governor Tarek Amer took a victory lap, telling Al Shorouk he was sure the “correct reform decisions taken” were going to make the central bank hit its target.

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