Marwa Al Ghoul
The Central Bank of Egypt (CBE) announced on Monday that net foreign exchange reserves rose to 44.501 billion dollars at the end of October, compared to 44.459 billion dollars at the end of September. Increase in foreign currency cash flows, which come in the form of foreign investments, whether direct or indirect.
In this context, the Central Bank is moving in accordance with a plan to increase the reserves of Egypt's cash reserves to reach 50 billion dollars over the next few years, supported by increased revenues of the tourism sector and foreign direct and indirect investment flows.
$ 44.501 billion net cash reserves at the end of October
For his part, Dr. Rashad Abdo, the economic expert, said in special statements to "Voice of the Nation" that the increase in the rate of cash reserve to reach 44.501 billion dollars at the end of last October, a big gain, as that increase, even if a few is very good for the Egyptian economy.
Read also: The fifth installment of the IMF loan raises the cash reserve .. Know the amount
Components of foreign currency reserve
Dr. Rashad Abdu pointed out that the foreign exchange reserves consist of a basket of foreign currencies distributed between the dollar, the euro, the pound sterling, the Chinese yuan and the Japanese yen, pointing out that the relative distribution of these currencies is subject to a specific plan by the Central Bank of Egypt, The gold ratio is also equivalent to the cash reserve, and also includes IMF loans as well as special drawing units.
Pumping more investments into Egypt
Dr. Rashad Abdu, the economic expert, added that the rise in net foreign reserves in the coffers of the central bank is reassuring to investors to inject more investments inside Egypt, either directly or indirectly. Moreover, the increase in foreign exchange reserves is a gain for the Egyptian stock exchange. In order to provide commodities and food and to repay the premiums and benefits of external debt.
Read more: The interest of minting the currency stops the bleeding of the dollar .. Does Nag Hammadi succeed in increasing the cash reserve?
The rise in foreign exchange reserves of Egypt
The figures indicate that Egypt's foreign exchange reserves rose by 8.2 billion dollars during the period from the end of August 2017 to the end of July 2018. More than 8 months of commodity imports to Egypt are currently sufficient to register at the end of July 2018, Balances estimated at 44.3 billion dollars, from the level of 36.1 billion dollars at the end of July 2017, and 44.4 billion at the end of August,And after the disbursement of the fifth and last tranche of the International Monetary Fund loan by the end of December next will increase the size of reserves of foreign exchange reserves, to more than 46.4 billion dollars.