Strong external FX buffers, resilient growth, and multilateral support shield Egypt against the worst outcomes
Macro view/ CBE conference call with deputy governo
r
According to the CBE, Egypt is standing on a more solid ground to withstand any economic shocks, including the current unprecedented novel virus outbreak, than any time before thanks to:
The strong stock of foreign currency buffers where foreign currency holdings at the CBE reached USD48.7bn (equivalent to more than 8 months of merchandise imports), by the end of February 2020.
The surge in foreign currency liquidity in the banking sector, including USD23bn in foreign assets and banks’ NFA of USD7bn by the end of February 2020.
The growth dynamics that depend on diversified sectors.
The successful economic reform backed by the IMF bold reform agenda that put the public finance on a more sustainable footing and shored up confidence in the local currency.
The well-capitalized and healthy banking system
Mona Bedeir
Senior Economist
Tel.: +202 3300 5722