CBE adds another USD 50 mn to FX reserves in August: Net foreign reserves were essentially flat in August at USD 34.93 bn, up from USD 34.88 bn in July, according to c entral bank figure s. This is the 11th consecutive month that foreign reserves have increased, albeit very modestly each time.

USD 1.8 bn and counting: The central bank has been trying to rebuild its reserves since last year when Russia’s invasion of Ukraine precipitated heavy capital outflows and caused its FX stockpile to fall almost USD 8 bn to USD 33.1 bn last August.

Background: The global shock triggered by the war, combined with tightening global financial conditions across the world, has plunged the country into its worst FX crunch in years and left the EGP down by almost half against the greenback. The FX shortage and continued uncertainty about the currency has fuelled a resurgent parallel currency market that has placed further pressure on FX liquidity in the banking system.

Tags: