The Egyptian Cabinet's Information and Decision Support Center (IDSC) announced that the net foreign exchange reserves of the Central Bank of Egypt (CBE) will hit $44.26 billion by the end of June 2018.
Egypt imports goods and products from abroad in a value of average of $ 5 billion a month. While the annual total value of imports reach more than $ 55 billion. Thus، the current average of foreign exchange reserves in Egypt will cover about 8 months of imports of goods.
This is higher than the global average reaching 3 months of goods imports to Egypt. Egypt’s foreign exchange reserves were around $36 billion before the January 2011 revolution. It fell to nearly $19 billion before a $12 billion loan was signed with the International Monetary Fund in November 2016.
The flotation of the Egyptian pound and high interest rates helped attract foreign investment in government debt instruments، which reached about $23 billion at the end of March.
Egypt has expanded foreign borrowing in hard currency over the past months to finance the budget deficit and to provide US dollar on market in an attempt to control the exchange rate and eliminate the black market.
Egypt’s foreign debt jumped to $82.9 billion at the end of December.