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FINANCIAL NEWS
Political turmoil dips Egypt’s foreign reserves further in January
06 Feb 2013
(MENAFN) Egypt’s central bank said that its foreign reserves dwindled to under USD15 billion in January, after being exhausted trying to defend the national currency, Reuters reported.
The central bank said its foreign reserves hit USD13.6 billion last month from USD15.01 billion in December, as the the ongoing political turmoil has continued to pressure the pound, despite financial support from Qatar.
Economists said Egypt must seal a deal with the International Monetary Fund (IMF) to get the USD4.8 billion aid, as a continuing fall in the reserves would hinder the government’s capability to support the Egyptian pound.
Final ratification of the agreement was postponed at Egypt’s request in December because of political unrest.
Foreign reserves have plummeted from USD36 billion on the eve of the uprising that swept Hosni Mubarak from power in February, 2011.
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