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FINANCIAL NEWS
Egypt- Foreign reserves at USD15b, enough for 3 months’ imports
08 Jan 2013
(MENAFN) The Central Bank of Egypt announced that the country’s foreign currency reserves declined to USD15.014 billion at the current time from USD36 billion before 2011 uprising, reported Arab Times.
The bank said that the amount, which represents a decline of USD26 million from November, is sufficient for only 3 months worth of imports.
The decline in foreign reserves is attributed mainly to the withdrawal of foreign investments and the decline in tourism receipts.
Many investors and private citizens abandoned Egyptian pounds due to last month’s political unrest, pushing Egypt’s foreign reserves to a new low level and forcing the central bank to bring in a system of daily auctions and currency controls.
It is worth noting that Egypt has used its foreign currency reserves to hold up its local currency and to guarantee essential imports, including wheat and fuel.
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