Decline In Egypt’s Foreign Reserves’ Could Slow Down By March; Says Ramez

The governor of the Central Bank of Egypt (CBE) Hisham Ramez expected foreign reserves’ decline to slow down in March after they fell to US$ 13.6 billion.

Ramez affirmed that there will be a relatively small decline in foreign reserves as the country’s obligations will be lesser than before.

CBE seeks to keep the value of foreign reserves at a certain level, he told Al-Shorouk newspaper.

Egypt’s foreign exchange reserves hit $13.6 billion in January, compared to $36 billion on the eve of the 2011 uprising that ousted former President Hosni Mubarak.

Reserves have been hit by political turmoil that has scared off investors and tourists. They are now less than the amount needed to cover three months of imports.

“The rate of decline in foreign reserves could be lowered next month,” Al-Shorouk newspaper quoted Ramez as saying. It did not give a direct quote.

Ramez said Egypt would present its economic reform plan to the IMF in a week after it discusses it with “the people and political parties”.

The IMF signed a preliminary agreement with Egypt in November, but ratification was postponed at Cairo’s behest in December following the eruption of a new wave of political unrest.

Diplomats say an IMF deal could unlock up to $12 billion in extra funding from a range of sources including the World Bank, the European Union, the United States and Gulf Arab countries.

The Egyptian pound has lost 14 percent of its value since the 2011 revolt, with more than 8 percent of the decline occurring since the end of December.