Rise in FX reserves must be scrutinized to determine just how positive it actually is

The jump in Egypt’s foreign reserves to record highs is all well and good, but what does it mean for the average citizen? That’s Emad El Din Hussein’s question in a column penned for Al Shorouk. First, he says, we must understand whether the increase reflects a healthy domestic economy or just an aggregation of facilities that will need to be paid back. The second question to be posed pertains to the jump in Egypt’s foreign debt and how it will affect the country’s economic future, particularly as we consider our ability to repay. Lastly, Hussein wonders how the health of our FX reserves will reflect on the average citizen’s life and whether it will play any role in improving living standards.