Central Bank of Egypt - File photo
CAIRO – 4 June 2017: Egypt’s foreign reserves soared $2.48 billion in one month to reach $31.125 billion at the end of May, the Central Bank of Egypt (CBE) said on Sunday.
The May figure jumped from $28.64 billion at the end of April to record the highest level since 2011.
The increase is justifiable as the proceeds of a $3 billion Eurobond sale issued by the Egyptian government, in the London Stock Exchange and Luxembourg Stock Exchange, were expected to reach state coffers by the end of May.
Foreign reserves are further expected to grow in June when the second tranche of a $12 billion extended fund facility from the International Monetary Fund (IMF) in the amount of $1.25 billion is expected, after receiving $2.7 billion in November as the first tranche.
The CBE had $36 billion in foreign reserves on the eve of the January 25 Revolution in 2011 which overthrew President Hosni Mubarak after 30 years in power, but political turmoil and security concerns took a heavy toll on tourism and foreign direct investment, two key sources of hard currency, draining more than 50 percent of Egypt’s reserves.