Egypt’s FX reserves rise for the first time since February, CBE

Foreign reserves increased slightly in June, rising to USD 38.2 bn from USD 36 bn in May after three consecutive months of decline, according to Central Bank of Egypt (CBE) data.

Reserves have fallen almost $ 10 billion from a peak of $45.5 bn since the outset of the covid-19 pandemic in March as foreign capital fled the country, the vital tourism industry shut up shop, and the central bank stepped up purchases of strategic commodities and met debt repayments.

Since March, Egypt has seen a decline in its NIRs, which have been hit by the coronavirus crisis with foreign investors selling their T-bills and bonds.

In March, the CBE disclosed that Egypt’s NIRs had fallen to $40.108 billion as of the end of March 2020, down from $45.510 billion in the end of February 2020.

In May, Egypt received a $2.4 billion loan from the International Monetary Fund (IMF) under the rapid finance instrument to help deal with the impact of the COVID-19 crisis.

In June, the IMF handed Egypt the first tranche of another loan under the stand-by agreement worth $2 billion, out of $5.2 billion, while the remaining $3.2 billion are to be disbursed following two reviews.