Egypt..foreign exchange reserves fell to a record level

Egypt’s central bank said net foreign exchange reserves initially reached $33.143 billion at the end of July 2022, up from $33.375 billion at the end of June.

The balance of payments received an overall deficit of about $7.3 billion, almost the entire deficit was recorded during the first 9 months of 2022-2021, ending in March last year, due to the consequences of the Russian-Ukrainian crisis, according to the Central Bank. , in addition to an increase in the import bill in the light of rising world prices, and the exit of Foreigners’ investments from the securities portfolio, which was redeemed without any delay, which led to a reduction in net capital inflows and financial transactions.

The amount of foreign investment that came out during this period amounted to $17.2 billion, which is associated with investor anxiety caused by the Russian-Ukrainian war and the contractionary monetary policy pursued by the US Federal Reserve, which contributed to the outflow of hot money from developing countries. markets.

Remittances from Egyptians working abroad for the 11 months in the period July/May 2021/2022 were about $29.1 billion, up 2.1% year-on-year from about $28.5 billion compared to the July/May 2020/2021 period.

Total remittances from Egyptians working abroad totaled $3.1 billion in April 2022, up 24.4% year-on-year from about $2.5 billion compared to April 2021, while decreasing up 7.2% compared to the immediately previous month, March 2022, which recorded $3.3 billion.

Egypt’s foreign exchange reserves jumped from $31.3 billion in fiscal 2016/2017 to around $44.3 billion in fiscal 2017/2018 and then continued to rise in fiscal 2018/19 to a record $44.5 billion before decline in light of the Corona virus spread crisis and the precautionary measures it has imposed.

Source: Cairo 24

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