“Arab Countries’ Foreign Exchange Reserves Face Liquidity Risks, Tunisia and Egypt Most at Risk”

The foreign exchange reserves of three Arab countries face more risks, especially during the next two years, which exposes them to liquidity risks amid tighter global financial conditions.

Moody’s credit rating agency data shows that Bahrain is one of the countries most on its list of frontier markets facing pressure on its foreign exchange reserves, as the value of its international bonds due for repayment this year is about 26%, and it will rise to more than 30% over the next two years.

The greatest risks will face Tunisia and Egypt, especially in light of the limited external financing available to both countries. The value of the international bonds due to be repaid by the two countries is about 12% of the foreign exchange reserves during each of the next two years.

Tunisia’s foreign exchange reserves reached $ 8.09 billion at the end of last year, while it is looking to strengthen its dollar resources, as the country is close to obtaining a $ 1.9 billion bailout package from the International Monetary Fund, which may open the way for it to obtain more financing. external.

The situation is similar for Egypt, whose foreign exchange reserves exceed $34 billion. The Arab country, the largest in terms of population, is accelerating its pace to sell government companies, which may save it up to two billion dollars, and this step allows the country to start the first review with the International Monetary Fund within a financing program of 3 billion dollars.