Egypt’s foreign reserves continue to rise in July

Egypt added another USD 69 mn to its foreign reserves in July: Reserves inched up to USD 34.88 bn in July from USD 34.81 bn in June, according to central bank figures. This is the tenth consecutive month that foreign reserves have increased, albeit very modestly each time.

Background: The country has been suffering a prolonged FX crunch triggered by the global shock caused by Russia’s war in Ukraine and rising interest rates. The EGP has lost almost half of its value against the greenback since March 2022, fuelling a resurgent parallel currency market that has placed further pressure on FX liquidity in the banking system.

REMEMBER- State-owned banks Banque Misr and the National Bank of Egypt recently launched two new USD certificates of deposit in a bid to shore up FX reserves. The NBE expects to draw more than USD 4 bn in fresh FX from the issuance.