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Sunday, 24 April 2016

CBE is expecting USD 4 bn from UAE to boost reserves, investment

The UAE is providing Egypt with USD 4 bn in support, including USD 2 bn to be deposited with the CBE to boost foreign reserves and the rest directed toward development projects in Egypt, according to Abu Dhabi Crown Prince Mohamed bin Zayed Al Nahyan, Reuters reported on Friday. Central Bank of Egypt sub-governor Tarek Fayed said he hopes to receive the deposit sometime this week. Bloomberg writes that it is unclear whether the support referred to the aid and investment promised at the EEDC when Saudi Arabia, Kuwait and the UAE each pledged USD 4 bn, including a total of USD 3 bn in deposits at Egypt’s central bank. Details of the UAE aid allocation came at the end of a visit by Abu Dhabi’s crown prince Sheikh Mohammed bin Zayed al-Nahyan to Egypt on Friday, during which he met with President Abdel Fattah El Sisi, according to an Ittihadiya statement. FX reserves hit USD 16.561 bn in March and are expected to increase to about USD 18.5 bn after receiving funding from the UAE. CBE Governor Tarek Amer is targeting USD 25 bn in foreign exchange reserves before the end of the year and said in an interview earlier this year that that is the threshold at which he would consider further devaluation of the EGP.

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