The Central Bank of Egypt said that its official foreign exchange reserves rose by $ 100 million last February.
and the bank's website showed that the official reserve rose to $ 40.2 billion in February compared to $ 40.1 billion in January, continuing its continuous series of increases since last June.
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The unofficial reserve at the Central Bank rose by $ 3.12 billion, to reach $ 13.9 billion, compared to $ 10.8 billion in January.
Also, deposits not included in the official reserves of the Central Bank rose to 8.7 billion dollars from 5.59 billion by the end of January, an increase of approximately 3.1 billion dollars, and the central bank keeps those deposits in banks Local.
The reserve is still below its record levels that it recorded before the outbreak of the Corona pandemic in February of last year, which exceeded $ 45 billion, but it recovered a large part of its losses caused by The pandemic with the suspension of tourism revenues, and the exit of foreign investors from the government debt market during the months of March, April and June of last year.
Mohamed Abobasha, Vice President of Research at EFG Hermes, told Al-Borsa newspaper that the CBE's preference for directing international bond proceeds to deposits not included in official reserves is due to the policy of The investment bank. He expected the reserve to reach 43 billion dollars by the end of this year.
He said that the gradual rate cut would stimulate foreign investment in treasury bills, as they seek to increase the subscription before the interest drops further.
but he noted that the rise in interest on US bonds weakens the appetite of investors in emerging markets in the short term.
Abobasha stated that Egypt's joining of the GBMorgan Emerging Markets Index or linking through the Euroclear platform will give stability to foreign flows in government debt portfolios, especially as capital is directed to invest in Countries within the index.
