CAIRO, Nov 10 (NNN-MENA) – The Central Bank of Egypt (CBE), announced yesterday that, the country’s net international reserves (NIRs) reached a record high of 50.07 billion U.S. dollars, by the end of Oct, up from 49.53 billion dollars recorded at the end of Sept.
The figure represents the highest level of foreign reserves in the country’s history, underscoring the success of recent financial reforms and significant inflows of foreign investment, analysts say.
“The milestone is particularly notable as it comes after a period of intense economic strain, and a critical shortage of foreign currency,” said Abu Bakr al-Deeb, an economic researcher and adviser to the Cairo-based Arab Centre for Research and Studies.
He viewed the increase as a powerful indicator of renewed investor confidence in the Egyptian economy, and a critical buffer against global market volatility.
He noted that, the sharp rise reflects several factors, including proceeds from recent large-scale investment deals, efforts to boost non-petroleum exports, and a sustained increase in remittances from Egyptian expatriates.
NIRs are the foreign assets held by a central bank, including currencies, gold, and International Monetary Fund special drawing rights, excluding any liabilities. They are used to service external debt, pay for imports, and help stabilise the national currency.
Rising reserves are generally seen as a sign of stronger financial stability, and an increased ability to withstand potential external shocks.
Egypt’s foreign exchange reserves are built up through various sources, including gold reserves, revenues from the Suez Canal and tourism, remittances from Egyptians abroad, export proceeds, and foreign investments.– NNN-MENA
