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Monday, 5 September 2016

Net FX reserves up to USD 16.56 bn on the back of USD 1 bn UAE deposit

Net foreign reserves rose just over USD 1 bn to USD 16.56 bn in August, up from USD 15.54 bn a month before, according to a “preliminary notice” on the Central Bank of Egypt’s website released yesterday. The CBE offered no explanation for the uptick, but the USD 1 bn deposit by the UAE a few weeks back likely played a role The CBE had reported a USD 2 bn drop for July to USD 17.55 bn as the country repaid foreign debt and other obligations.

This comes as the EGP weakened slightly on the parallel market yesterday,with greenbacks changing hands at EGP 12.80 per USD 1, Al Mal reports. The EGP had steadily weakening throughout last week to reach EGP 12.70-12.75. An unnamed FX trader told the news source that EGP typically sags against foreign currencies in the run-up to the Eid holiday due to heightened demand; back-to-school season also plays a role.

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