Rise of Egypt's forex reserves indicates strong economy: MPs


Wed, 05 Jun 2019 - 07:00 GMT

FILE – Dollars and Euros – public domain pictures/Petr Kratochvil

FILE – Dollars and Euros – public domain pictures/Petr Kratochvil

CAIRO – 5 June 2019: A number of parliamentarians highlighted the Egyptian Central Bank's announcement concerning the rise of foreign exchange reserves (forex reserves) to $44.27 billion at the end of May.

Foreign exchange reserves is defined as the foreign-currency deposits which the national central banks and monetary authorities hold. Egypt’s foreign reserves rose by about $106 million, recording $44.218 billion by the end of April 2019, compared to $44.112 billion by the end of March 2019, according to the Central Bank of Egypt (CBE).

Many parliament members said that this increase restores much confidence in the Egyptian economy and encourages investments, as it represents an evidence of strong economy and a successful national reform plan.

Parliament's Economic Affairs Committee member Mahmoud al-Saeedi said that the rise of foreign exchange reserves is a positive indicator of the success of the economic reform carried out by the Egyptian state. He also pointed out to the fall of the US dollar against the Egyptian pound as well as the flow of foreign currency.

The rise of foreign exchange reserves also confirms the increase in exports and the decrease in imports, Saeedi added.

MP Sami Ramadan highlighted that the economic reform program has significantly reduced inflation, unemployment rate, and increased production.

MP Hala Abu al-Saad said that such increase in forex reserves can be used to meet the initial needs of the state. She expressed hope of a further increase in the foreign reserves which she says would contribute to supporting the economic sectors in Egypt.

The current average of foreign reserves covers about eight months of Egypt's commodity imports, which is higher than the global average of about three months of commodity imports.

Foreign currencies in Egypt’s foreign reserves include the U.S. dollar, euro, Australian dollar, Japanese yen and Chinese yuan.



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