Egypt’s Foreign Reserves Grow by $705 Million in August
The Central Bank of Egypt reported that foreign reserves grew by US$ 705 million in August 2012. This is resuming a rise after falling the month preceding. Egypt’s net international reserves stood at US$ 15.13 billion at the end of August 2012. During the Egyptian overthrow of President Hosni Mubarak, reserves dropped more than 50%.
In late August 2012, the central bank sold 513 million euros worth of euro-denominated T-bills. Foreign investors constituted around 20% of the inaugural euro T-bill auction.
In mid-August 2012, after a meeting between Egyptian President Mohamed Morsi and Qatar’s emir, Sheikh Hamad bin Khalifa Al Thani, Qatar plans to deposit US$ 2 billion at the Central Bank of Egypt. This is a signal showing support from Qatar. The country of Egypt is still in a relatively fragile political state coupled with a growing balance of payments predicament.