CBE witnesses surge in international reserves after Ras El Hikma agreement, IMF program

(MENAFN) The Central Bank of Egypt reported a notable rise in net international reserves, reaching USD40.361 billion in March, up from USD35.311 billion in February. This increase comes in the wake of various financial developments, including a significant payment related to the Ras al-Hikma deal. Central Bank data indicated a shrinkage in Egypt's net foreign assets deficit by 217.1 billion Egyptian pounds (USD7.04 billion) in February, following a USD5 billion payment associated with the Ras al-Hikma project.

The Ras al-Hikma deal, announced by Egyptian Prime Minister Mostafa Madbouly on February 29, involved an initial payment of five billion dollars from the United Arab Emirates (UAE). The deal, valued at USD24 billion, pertains to the development of the Ras El Hekma project, situated west of Alexandria. This injection of funds contributed to the reduction of Egypt's net foreign assets deficit, bolstering the country's financial position.

Furthermore, Egypt's engagement in an expanded financial support program with the International Monetary Fund (IMF), totaling eight billion dollars, on March 6, is expected to have a further impact on the country's financial landscape. However, the effects of this program have not yet been fully reflected in the recent data released by the Central Bank.

In addition to the Ras al-Hikma deal and the IMF program, Central Bank data highlighted other notable changes in the financial sector. Banks' foreign assets experienced a substantial increase of 911.3 billion pounds on a monthly basis in February, while their liabilities decreased by 15.73 billion pounds. Moreover, foreign claims on the Central Bank decreased by approximately 81.6 billion pounds, further reflecting shifts in Egypt's financial dynamics.

Overall, the increase in Egypt's net international reserves, coupled with the implementation of significant financial agreements and programs, signals a positive trajectory for the country's economic outlook. These developments underscore Egypt's efforts to strengthen its financial resilience and attract foreign investment in key development projects.


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