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05/03/2018 - 13:45hs

Egypt’s foreign reserves up 11.2%

The Arab country’s foreign exchange reserves reached USD 42.5 billion in February, above the USD 38.2 billion of January. Egypt issued eurobonds and also improved economic indicators.

São Paulo – Egypt’s foreign exchange reserves increased from USD 38.2 billion at the end of January to USD 42.5 billion at the end of February, according to the website of news outlets Ahram Online and Gulf News, based on information released by the Egyptian Central Bank this Sunday (4).

The 11.2% hike was boosted by the issuance of eurobonds by the country in February and by the improvement of local economic indicators.

The eurobonds are debt securities and can be issued by governments to self-finance through payment of interest rates. Egypt issued USD 4 billion with maturities of three, five and 30 years.

Egypt’s foreign reserves has been increasing since the country signed an agreement with the International Monetary Fund (IMF) in 2016, which carries a USD 12 billion loan, with disbursements in a three-year period and the implementation of measures advised by the financial institution.

The agreement was signed by Egypt to revive its economy and once again attract foreign investors. Before the signing, the Arab country’s foreign exchange reserves stood at USD 19 billion.

“Net international reserves jumping to a new safe level will enhance investment confidence,” says the senior economist of CI Capital, Hany Farahat. He believes that this will minimize the effect of the USD 12 billion in debt payments that are due this year.

*Translated by Sérgio Kakitani

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