Egypt’s rising FX reserves should not overshadow remaining economic challenges

The increase in the central bank’s reserves has been driven by “heavy external borrowing as investors pour money into Egyptian assets,” Bloomberg’s Ahmed Feteha suggests. Praising the increase in the reserve build up, The National's editorial board suggests that a number of challenges remain for the Egyptian economy. The Abu Dhabi-based publication believes that the EGP is “not yet fully convertible” and is not “freely traded against the [USD]” as other currencies. Egypt also faces other economic challenges, including increasingly high rates of poverty and unemployment. They suggest that Egypt needs to increase investments in education and healthcare to “produce more fit graduates” capable of leading the country.