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How currency float increased Egypt’s foreign reserves to all-time high

The pound flotation has lifted Egypt’s foreign reserves to an all-time high topping $45.117 billion at the end of September, and to maintain the reserves at historic record highs, economists urge the government to boost local industrialization.
An employee counts Egyptian pounds at a foreign exchange office in central Cairo, Egypt, March 20, 2019. REUTERS/Mohamed Abd El Ghany - RC1187BDCF70

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.

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