The Central Bank of Egypt (CBE) will reveal, this week, the latest situation of its foreign exchange reserves as of the end of June 2016.
The CBE’s foreign exchange reserves reached $17.52bn in May, compared to $17.01bn in April, an increase of $510m.
It is unlikely that the foreign exchange reserves will be affected by the CBE’s repayment of $1.72bn to Qatar and Paris Club countries, said Osama El-Menilawy, the assistant general manager of the financial sector at a private bank operating in Egypt.
This amount was paid in early July, so the impact is unlikely to be obvious in the numbers for June.
It is expected that the impact of this repayment will be seen when the CBE reveals the reserves’ numbers at the end of July 2016.
El-Menilawy expected the impact to be limited with the arrival of a deposit from the Emirates to the CBE which equals the same amount that was repaid by the bank.
Mohammed bin Zayed Al-Nahyan, Crown Prince of Abu Dhabi, announced earlier that the Emirates decided to offer $4bn as a form of support to Egypt, including $2bn which will be repaid to the CBE and $2bn allocated for investment in several development fields in Egypt.
Tarek Fayed, deputy governor of the CBE, has said in previous reports that the Emirati deposit will support the foreign exchange reserves greatly. It will also reinforce the efforts of the CBE in fighting against the dollar on the informal market.
