Egypt’s foreign reserves drop 19% due to economic crisis caused by Russia-Ukraine war
Egypt’s public budget is facing a major deficit due to the increase in expenditures and national currency depreciation.
CAIRO — Egypt’s net foreign reserves decreased by $236 million in July compared to June 2021, reaching $33.14 billion, according to an official statement issued by the Central Bank of Egypt.
As a result of the global economic crisis and Russia's war on Ukraine, the country’s foreign exchange reserves have dropped by $7.8 billion over the past seven months, registering a 19% decrease, compared to $40.93 billion at the end of December 2021.
The Egyptian government had to take measures to reduce the budget deficit and deal with the decline in the cash reserve.
An informed political source close to the decision-making circles in Egypt told Al-Monitor on condition of anonymity that the government decided to take some measures to face the economic crisis, mainly postponing some national projects such as the establishment of the new administrative capital and halting expansion plans and construction of new cities.
