Back to the complete issue
Monday, 5 March 2018

Reserves at the central bank hit USD 42.5 bn in February, their biggest jump since July

Reserves record their biggest jump since July: The central bank’s FX reserves recorded USD 42.5 bn in February from USD 38.2 bn in January — reaching another highest-ever mark. The USD 4.3 bn m-o-m increase is only dwarfed in recent years by the USD 4.7 bn recorded last July. The increase in February is mostly attributable to the successful USD 4 bn eurobond issue, which was 3x oversubscribed. “Net international reserves jumping to a new safe level will enhance investor confidence and minimize the funding gap even with the USD 12 bn of repayments outstanding for this year,” Hany Farahat, senior economist at CI Capital, told Reuters. He told Bloomberg “the surge in reserves ‘definitely facilitates the reduction in policy rates this year and minimizes the risk of currency outflows as rates decline.’” CBE Sub-Governor Rami Aboul Naga told Bloomberg the eurobond sale “was only one contributor to the increase. A marked improvement across a range of economic indicators had also provided a boost,” but did not elaborate further.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.