By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
DailynewsegyptDailynewsegypt
  • Home
  • Business
    BusinessShow More
    Suez Canal Bank signs protocol with Chinese TEDA to support investment in SCZone
    Suez Canal Bank signs protocol with Chinese TEDA to support investment in SCZone
    June 1, 2023
    Egypt, GIZ sign agreement of €8m to support e-government, innovation in management
    Egypt, GIZ sign agreement of €8m to support e-government, innovation in management
    June 1, 2023
    Egypt hosts InnoXera Summit on education in artificial intelligenceage
    Egypt hosts InnoXera Summit on education in artificial intelligenceage
    June 1, 2023
    Egyptian economy offers great competitive advantage, diversified investment opportunities: Ayman Soliman
    Egyptian economy offers great competitive advantage, diversified investment opportunities: Ayman Soliman
    June 1, 2023
    Egypt's new membership in New Development Bank enhances South-South cooperation: Al-Mashat
    Egypt’s new membership in New Development Bank enhances South-South cooperation: Al-Mashat
    June 1, 2023
  • Politics
    PoliticsShow More
    India train crash kills at least 207, injures hundreds 
    India train crash kills at least 207, injures hundreds 
    June 3, 2023
    Madbouly reaffirms Egypt’s unwavering assistance for Palestine
    Madbouly reaffirms Egypt’s unwavering assistance for Palestine
    June 1, 2023
    Egypt reiterates firm position in support of Palestinian cause: Shoukry
    Egypt reiterates firm position in support of Palestinian cause: Shoukry
    June 1, 2023
    Egypt and France discuss joint cooperation in the health sector
    Egypt and France discuss joint cooperation in the health sector 
    June 1, 2023
    AU praises Egypt's role in achieving sustainable peace in Africa despite challenges
    AU praises Egypt’s role in achieving sustainable peace in Africa despite challenges
    May 31, 2023
  • Interviews
    InterviewsShow More
    EFG Finance to launch unified platform gathering all its financing services: Alaa Al-Afifi
    EFG Finance to launch unified platform gathering all its financing services: Alaa Al-Afifi
    May 31, 2023
    I changed my artistic path to create ‘state of wonder’: Tarek Lotfi
    I changed my artistic path to create ‘state of wonder’: Tarek Lotfi
    May 25, 2023
    I adore Ramadan drama, ‘Telt Al-Talata’ series achieved great success: Ghada Abdel Razek
    I adore Ramadan drama, ‘Telt Al-Talata’ series achieved great success: Ghada Abdel Razek
    May 8, 2023
    We aim to establish Egypt as nearshore centre for Software AG for MET region: Rami Kichli
    We aim to establish Egypt as nearshore centre for Software AG for MET region: Rami Kichli
    April 29, 2023
    Egypt-Spain relations witness remarkable development in recent years: Spanish ambassador in Cairo
    Egypt-Spain relations witness remarkable development in recent years: Spanish ambassador in Cairo
    April 18, 2023
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Reading: Egypt’s net international reserves increase to $40.93bn in 2021 despite COVID-19 repercussions
Share
Notification
Latest News
India train crash kills at least 207, injures hundreds 
India train crash kills at least 207, injures hundreds 
Politics Breaking News World
Adding flavour of innovation to F&B industry in Africa
Adding flavour of innovation to F&B industry in Africa 
Women
Egypt’s Women on Boards Indicator records 19.7% in 2022 with 3% growth
Egypt’s Women on Boards Indicator records 19.7% in 2022 with 3% growth
Women
Suez Canal Bank signs protocol with Chinese TEDA to support investment in SCZone
Suez Canal Bank signs protocol with Chinese TEDA to support investment in SCZone
Banking
Egypt, GIZ sign agreement of €8m to support e-government, innovation in management
Egypt, GIZ sign agreement of €8m to support e-government, innovation in management
Business
Aa
Aa
DailynewsegyptDailynewsegypt
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 DNE News. All Rights Reserved.
Dailynewsegypt > Blog > Business > Egypt’s net international reserves increase to $40.93bn in 2021 despite COVID-19 repercussions
Business

Egypt’s net international reserves increase to $40.93bn in 2021 despite COVID-19 repercussions

Hossam Mounir
Last updated: 2022/01/09 at 7:27 AM
By Hossam Mounir 6 Min Read
Share
SHARE

The Central Bank of Egypt (CBE) has revealed that the country’s net international reserves rose to $40.934bn in December 2021, an increase of $25m from November’s $40.909bn.

Egypt’s international reserves consist of foreign exchange (FX), gold, special drawing rights (SDRs), and net loans from the International Monetary Fund (IMF).

The value of FX reserves also increased to $34.056bn in December 2021, compared to the $34.035bn recorded in November.

Furthermore, the CBE said that the value of gold included in the reserves increased by about $6m in December 2021, reaching $4.228bn, up from $4.222bn in November 2021.

SDRs, however, decreased to $2.657bn, compared to November’s $2.659bn.

On the other hand, Egypt’s net international reserves increased by $872m in 2021, as opposed to 2020’s $40.062bn.

The purpose of FX reserves is to support the currency, help the state fulfil its financial liabilities, and ensure that basic commodities are imported for several months. The volume of reserves reflects a country’s strength or weakness. 

The revenues of the Suez Canal, tourism, exportation, foreign investments, and remittances are the most important resources feeding the reserves in Egypt.

In a previous report by the IMF, the institution expected that Egypt’s net international reserves would recover thanks to the main sources of FX growing to record levels. It expected the net international reserves to record $44.1bn in 2021/22, $47.6bn in 2022/23, $51.8bn in 2023/24, and $55.1bn in 2024/25.

Several experts stressed that despite all the challenges facing the Egyptian economy during 2021, cash reserves remained within safe limits, and were even able to record a remarkable rise despite the pandemic and the emergence of the Delta variant in 2021.

They pointed out that the rise in the monetary reserves in 2021 despite all the challenges is a real achievement of the CBE’s management of the monetary policy, managing to keep the reserves at a level above $40bn while fulfilling all foreign obligations on time.

Furthermore, the reserves managed to reach unprecedented levels — the highest ever in the history of Egypt — reaching about $45.51bn in February 2020, which contributed to increasing the CBE’s ability to support the state in light of the COVID-19 crisis.

Deputy Governor of the CBE, Rami Aboul-Naga, said in a previous statement that the unprecedented levels the reserves reached before the crisis and the large-scale implementation of structural reforms made Egypt more prepared to face external shocks.

Mohamed Abdel-Aaal, a banking expert, explained that the high reserve of foreign currencies in the vaults of the CBE means that there is no shortage of FX liquidity and that all international obligations and dues are repaid on time.

He added that Egyptian banks meet all import credits for strategic commodities and that traditional foreign exchange sources are within their normal rates.

Abdel-Aal also expected that Egypt’s foreign exchange reserves would witness further improvement in the coming period, with no decreases. 

He attributed his expectations to the fact that the net uses of Egypt’s FX reserves are carried out in a positive manner by the CBE, and that there are good flows from all sources of foreign exchange to Egypt, including remittances from Egyptians abroad, adding that Egypt’s tendency to issue bonds in international markets easily has made investors look favourably on the Egyptian economy.

Moreover, Abdel-Aaal highlighted the growth of foreign funding sources, such as the return of tourism and its prosperity, especially as Russian and German tourists return to Egypt.

He added that the growth of foreign investments in government debt instruments, ranging between $25bn and $30bn, has enhanced the balance of net foreign exchange reserves. Additionally, the remittances of Egyptians working abroad have increased, exceeding $30bn. 

There has also been an increase in the exportation of some commodities and gas exports are estimated at about $3bn annually, as well as improvement in the Suez Canal’s revenues.

He stressed that the improvement in the assessment of Egypt’s credit rating enhances the confidence of the international community for direct or indirect investment in Egypt and contributes to an increase in net cash reserves.

He also pointed out that Egypt has net foreign cash reserves that cover approximately seven months of Egypt’s import needs from abroad, outperforming the global average of four months, adding that the main goal is not increasing the balance of net foreign exchange reserves, instead, it is maintaining the average number of months covered by net reserves.

You Might Also Like

Suez Canal Bank signs protocol with Chinese TEDA to support investment in SCZone

Egypt, GIZ sign agreement of €8m to support e-government, innovation in management

Egypt hosts InnoXera Summit on education in artificial intelligenceage

Egyptian economy offers great competitive advantage, diversified investment opportunities: Ayman Soliman

Egypt’s new membership in New Development Bank enhances South-South cooperation: Al-Mashat

TAGGED: International reserves
Share this Article
Facebook Twitter Email Print
Previous Article hala al said Government injects EGP 2.4bn into 191 development projects in New Valley in 2021/22: El-Said
Next Article The Central Bank of Egypt (CBE) has launched a new EGP 15bn initiative to finance the dual-fuel vehicle conversion plan, with a lump-sum return of 3%. Local currency non-governmental bank deposits grow to EGP 4.38trn in November 2021: CBE
Ad image
Ad image

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Latest News

India train crash kills at least 207, injures hundreds 
India train crash kills at least 207, injures hundreds 
Politics Breaking News World
Adding flavour of innovation to F&B industry in Africa
Adding flavour of innovation to F&B industry in Africa 
Women
Egypt’s Women on Boards Indicator records 19.7% in 2022 with 3% growth
Egypt’s Women on Boards Indicator records 19.7% in 2022 with 3% growth
Women
Suez Canal Bank signs protocol with Chinese TEDA to support investment in SCZone
Suez Canal Bank signs protocol with Chinese TEDA to support investment in SCZone
Banking
//
Egypt’s only independent daily newspaper in English. Discuss the country’s latest with the paper’s reporters, editors, and other readers.

Quick Link

  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2023 DNE News. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?