Egypt net foreign reserves rise to $42.5B after Eurobond sale

CAIRO - 4 March 2018: Egypt’s foreign reserves rose to $42.524 billion at the end of February from $38.209 billion at the end of January, the central bank said on Sunday.

Cairo’s foreign reserves have been climbing since the country secured a $12 billion three-year International Monetary Fund loan program in 2016 as part of efforts to woo foreign investors and revive its ailing economy.

Reserves had dropped to about $19 billion before Egypt signed the three-year IMF deal, with Egypt floating the currency and lifting capital controls to lure back investors.

Egypt last month raised $4 billion in a dollar-denominated Eurobond sale to help plug its financing deficit and boost dollar holdings.

“Net international reserves jumping to a new safe level will enhance investor confidence and minimise the funding gap even with the $12 billion of repayments outstanding for this year,” said Hany Farahat, senior economist at CI Capital.

Egypt’s foreign debt rose to $80.8 billion in the quarter to the end of September.