Back to the complete issue
Wednesday, 8 April 2020

Egypt’s foreign reserves dip USD 5 bn in March

FX reserves dip in March for the time in 14 months: Foreign reserves dipped USD 5.4 bn in March to USD 40.1 bn from USD 45.5 bn in February, marking the first month in over a year that reserves have declined m-o-m, the Central Bank of Egypt (CBE) said in a statement (pdf). The drop came as the CBE dipped into its savings to cover portfolio outflows and fund imports of basic commodities, according to the statement.

Despite the hit, reserves are still good to cover Egypt's import bill for at least eight months, which is higher than the international standard of three month, the CBE said.

Falling remittances from Egyptians abroad and the hit to the tourism trade could put more pressure on foreign reserves in the coming months, Ehsan Khoman, head of Middle Eastern research at MUFG Bank said, according to Bloomberg. Remittances currently account for 8.8% of Egypt’s GDP. Our remittances rose 13.5% y-o-y in 1H2019-2020, helping to narrow our current account deficit during the first six months of the fiscal year.

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; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.