Egypt’s foreign reserves have been witnessing a continuous increase for a period of time, which, according to economists, are good indicators of increasing resources and an opportunity to reduce inflationary pressures due to the import of goods, and it also strengthens the decline of the US dollar against the Egyptian pound, which is witnessing the exchange market for weeks.
According to a statistical bulletin issued by the Egyptian Central Bank headed by Tariq Amer, today, Friday, 7 February 2020, the value of net foreign reserves in the central bank’s treasury increased by about $ 37 million during last January compared to December 2019.
High foreign reserves in the central bank
The value of net international reserves of foreign currencies in the central bank’s treasuries increased to record about $ 45.456 billion at the end of January 2020, compared to about $ 45.419 billion at the end of December 2019, which is enough for Egypt’s imports of goods for 8.6 months, according to the central bank statistic.
On the benefit of the increase in the value of the foreign reserves to Egypt, Dr. Mohamed Moait, the Minister of Finance, stated in previous press statements that this gives the country more global confidence in its ability to pay debts and obligations within the specified dates, and on the other hand it can cover its basic imports without problems, Also, the attractiveness of investment in Egyptian debt instruments increases among the various international institutions.
The International Monetary Fund praised, on more than one occasion, Egypt’s success in implementing the economic reform plan, under the facilities of the fund, noting that the macroeconomic situation in Egypt has been improving since 2016 when the exchange rate liberalization began.
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