CBE Received $1.7 Billion in Deposits from Arab Countries

Central Bank of Egypt (CBE) data showed that Egypt obtained a deposit worth an additional $1 billion from Qatar, and another $700 million from Libya by the end of 2022.

According to the bank’s report, short-term Qatari deposits with the Central Bank increased to $4 billion, while Libya’s deposits increased to $900 million, compared to 200 million by the end of September.

By the end of last year, short-term deposits from Arab countries with the Central Bank of Egypt rose to $14.9 billion, compared to $13.2 billion at the end of last September.

In May, the foreign reserve balance of the Central Bank of Egypt continued to rise for the eighth month in a row, at a value of $109 million.

According to central data, the reserve rose in May to $34.66 billion, compared to $34.551 billion at the end of April 2023.

Egypt is facing a foreign currency shortage crisis, the worst in years, in light of the increasing pressure on the pound recently, due to the repercussions of the Russian-Ukrainian war, as the country is actively seeking to attract foreign direct investments (FDI) and foreign inflows to the local debt market.

In less than a year, the Egyptian pound witnessed 3 devaluations, to reach levels near EGP 31 to the dollar.

In January, the International Monetary Fund (IMF) said that Egypt will receive $700 million of the $3 billion loan value during the current year 2023. Last December, the IMF agreed to disburse the first tranche of the loan amounting to $347 million.

According to the Fund, Egypt faces a financing gap of $17 billion over the next four years, and the IMF loan of $3 billion represents less than 20% of this gap.