Headline NIR inched up, while non-official reserves declined slightly: Egypt’s NIR grew slightly by USD136mn to USD40.3bn by the end of March 2021. Meanwhile, non-official reserves fell marginally by USD95mn to stand at USD8.6bn. The overall level of reserves is closer to restore its lost ground as it is only 6.7% off its pre-COVID-19 level of USD52bn, reaching almost USD49bn and covering nine months of merchandise imports. The process of rebuilding the FX buffers was due to the country’s ability to secure access to the overseas funding at favorable terms, including the recent issuance of USD3.75bn Eurobond in February. This came despite the persistence of pandemic-related headwinds, which increases the vulnerability of the country's external position given the large trade deficit, pressures on expat remittance flows, and downbeat predictions for tourism revenues and FDI inflows.
Mona Bedeir
Senior Economist
T +202 3300 5722