Monthly growth in Egypt’s Net International Reserve (NIR) position has remained relatively stable in July 2010, inching up by 0.16 percent to $35.27 billion compared with $35.22 billion in June 2010, when it saw a 0.34 percent month-on-month growth, Central Bank of Egypt data showed.
Annual growth in NIR slowed down in July 2010 to 11.54 percent compared to 12.50 percent in June 2010 and 12.47 percent in May 2010.
Detailed data on gross international reserves in July 2010 showed flat growth in the monthly balance of foreign currencies after a 1.2 percent m-o-m contraction seen in June 2010.
In its daily market report, Beltone Financial said, “Growth in Egypt’s NIR started to pick up more momentum since mid-2009, reflecting the general improvement in the global economic environment, the recovery seen in externally-facing sectors in Egypt, mainly the Suez Canal and tourism, and increased capital inflows.
“The seasonal slowdown in domestic economic activity, as the summer months and Ramadan begin, is likely to have been behind the relative stability in monthly growth in Egypt’s foreign international reserves in July 2010. Going forward, however, we expect NIR to continue to rise gradually, reflecting the better reserves management and increase in capital inflows, with the rise being counterbalanced by the widening current account deficit.”
