Bolstered by receiving the IMF’s SBA final tranche and capital inflows in T-bills, the overall stock of reserves grew at the fastest pace in three months. The overall stock of reserves (official + non-official) continued their upward trajectory, recording USD50.7bn by the end of June 2021 (vs. USD41.8bn by the end of June 2020). The net official reserves were slightly up at USD40.6bn by the end of June vs. USD40.5bn by the end of May (+0.3% m/m, +6% y/y). Meanwhile, the growth in non-official reserves quickened in June, driving it to USD10bn—the highest level seen since April 2018. This surge in non-official reserves came at a time where the build-up of inflationary pressures across the markets and related consequences on global monetary conditions have clouded the outlook for capital inflows to EMs and put the focus on the response of policymakers.
Mona Bedeir
Chief Economist
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