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FINANCIAL NEWS
Egypt to use foreign reserves to cover withdrawals
06 Feb 2011
(MENAFN) Deputy central bank governor, Hisham Ramez, talked about reopening commercial banks in Egypt despite rising political protests in the country, saying that the central bank would use its official foreign reserves of $36 billion to cover withdrawals and transfers when needed in an attempt to stabilize the economy of the country, reported the Peninsula.
On the other hand, the stock exchange that had been closed so far this month decided to remain closed, which is seen as an indication of the government’s lack of confidence in the country’s financial system.
It is worth noting that under the current unstable situation in the country, commercial banks are still concerned regarding huge withdrawals of cash by Egyptians who would fear for the safety of their deposits.
Earlier this month, the central bank in Egypt had announced that banks would be opened again, however, only limited withdrawals would be allowed.
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