Monday’s hot money exit didn’t drain Egypt’s FX reserves – PM

Egypt has experienced an outflow of hot money on Monday due to a global sell-off, but the government assures that this has not significantly impacted the country’s foreign reserves, which remain at a healthy level of $46.5 billion. The outflow was short-lived and represented a small portion of total investments, Prime Minister Moustafa Madbouly told a press conference on Thursday.

The total amount of hot money that left Egypt during a global sell-off on Monday “represented no more than 7-8 per cent of the total outstanding in the market at the time, and things returned to normal by the second day.” Prime Minister Madbouly said.

He attributed the outflow to global market instability caused by escalating tensions in the Middle East and broader economic concerns. Despite these challenges, Egypt maintains stable foreign currency sources and sufficient strategic reserves to cover eight months of imports.

The prime minister noted that global losses from “Black Monday” were estimated at $6 trillion, saying, “There is a global crisis of confidence, and it has become a worldwide issue.”

He stressed the need to shield the Egyptian economy from global shocks, highlighting a clear implementation plan to attract investment and deepen domestic industry to achieve 6 per cent economic growth.

Moreover, Prime Minister Madbouly pointed out the decrease in public debt over the past six months, affirming that the public debt is within safe limits and the state aims to reduce it further as global tensions ease.