Egypt’s foreign reserves hit an all-time high topping $45.117 billion at the end of September, the Central Bank of Egypt (CBE) said in an Oct. 1 statement. Higher foreign reserves are expected to boost the local currency. However, to maintain that high level of reserves, economists tip the government to encourage industrialization to boost exports in the long run, given rising foreign debt, which edged up to $106.2 billion at the end of March, up from $96.6 billion at the end of December 2018.
In September, the country’s international reserves rose by $149 million from $44.969 billion in August, according to the CBE. Economists say the floating pound has been a radical turnaround as the Egyptian financial and monetary authorities have launched a raft of economic reforms since November 2016.
Between 2011 and 2013, Egypt’s international reserves dwindled from $36 billion at the end of January 2011 to as low as $14.9 billion at the end of June 2013, according to CBE data.
“The currency float has triggered a series of reforms, of which the foreign exchange rate has been the cornerstone driver. Egypt’s four strategic hard currency resources have been on the rise since the pound flotation in 2016,” Rashad Abdo, head of the Egyptian Forum for Economic and Strategic Studies, told Al-Monitor.
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