By: Heba El-Kordy
Cairo – Mubasher: Egypt’s foreign reserves continued to rise to record high levels, exceeding $45 billion in November.
From January to November, the most populous Arab nation’s international reserves climbed by about $2.8 billion on the back of several factors, according to a survey conducted by Mubasher.
Mainly, the increase in foreign reserves was driven by the issuance of Eurobonds and the receipt of the last $2 billion tranche of the International Monetary Fund’s (IMF) loan.
The impact of the IMF loan has not been reflected on foreign reserves except in February when foreign reserves leapt to $44.06 from $42.55 billion in December 2018.
Noaman Khalid, an economist at CI Capital Holding, expects Egypt’s foreign reserves to be stable at $45 billion, noting that the proceeds of the issuance of $2 billion Eurobonds in November will not boost foreign reserves, but rather be used in repaying debts and meeting the needs of the Ministry of Finance.
For her part, Mona Bedeir, an analyst at Prime Holding, revealed that the outstanding balance of Egypt’s government bonds in international markets reached $29.7 billion after the issuance in November.
Prior to Egypt's popular uprising in 2011, the country’s foreign reserves stood at nearly $36 billion, which subsequently declined due to the decrease in foreign direct investments and tourism income.