MACROView: Propped up by FX inflows, CBE amasses more reserves, turns NFA to net asset position
Egypt/ Net International reserves June 2020 reading
NIR gains a boost for first time in three months while non-official reserves face a surprising downturn: Egypt’s net international reserves (NIR) grew by USD2.2bn by end of June 2020, recovering some of the USD9.5bn lost in the space of three months (March-May) on the back of massive capital outflows induced by COVID-19 and the CBE’s tendency to use its buffer to ease the pressure on the EGP. The unexpected USD1.5bn fall in non-official reserves should mean that the country’s foreign (official and non-official) reserves increased by c.USD693mn by end of June 2020 to currently stand at USD41.8bn, covering c.8 months of merchandise imports. The country received USD2bn out of USD5.2bn from the IMF’s 1-year SBA in June and is expected to receive the rest over two reviews, at USD1.6bn each.
Mona Bedeir
Senior Economist
Tel.: +202 3300 5722