Egypt’s international reserves jump to $40 bln for first time since October: CBE

Egypt’s international reserves jump to $40 bln for first time since October: CBE

Egypt's net international reserves (NIRs) rose to $40.06 billion by the end of December 2020, up from $39.2 billion recorded in October and November, the Central Bank of Egypt announced on Tuesday.

This is the first time the NIRs have increased since October.

In the beginning of November, the CBE announced that Egypt's NIRs witnessed a slight increase in October reaching $39.2 billion, up from $38.4 billion recorded in September.

In September 2019, Egypt's NIRs recorded an all-time high of $45.1 billion, before witnessing a significant drop in March 2020, reaching $40 billion, driven by the unprecedented blow to global financial markets arising from the COVID-19 pandemic.

COVID-19 has caused the sharpest portfolio flow reversal on record for emerging markets, including the Egyptian market, according to the CBE.

As of the end of June 2020, Egypt's NIRs started to bounce back for the first time since March, increasing to $38.2 billion, up from $36 billion in May.

CBE Governor Tarek Amer said in previous statements that mid-June witnessed a strong return of foreign investors to the Egyptian financial market, in light of the global market recovery and the successful efforts by the Egyptian government to contain the pandemic