Moody’s sees Egypt’s liquid foreign exchange reserve buffer to fall to $30 billion at June-end

Moody’s estimated on Monday that Egypt’s liquid foreign exchange reserve buffer will decline to about $30 billion at the end of the current financial year 2019/2020 down from $42 billion in February before the coronavirus outbreak.
Egypt’s financial year 2019/2020 ends by next June.
The expected decline is a result of increased external funding needs and reduced capital inflows and stabilise at these levels, the rating agency added in a statement.
However, Moody’s said at these levels, foreign exchange reserves will remain sufficient to fully cover the Egyptian economy’s upcoming annual external liabilities over the course of the next few years.