Nidal Assar, deputy governor of the Central Bank of Egypt (CBE), denied what was said about allocating a large value of Egypt’s foreign cash reserves to support the Egyptian pound.
The foreign reserves declined more than US$20 billion as about US$ 600 million was used to meet the monthly requirements of the Ministry of Petroleum and US$ 100-200 million was allocated for the Public Authority of Supply. In addition, EGP 7 billion was used to finance part of the public budget deficit.
The CBE did not use foreign reserves in supporting the Egyptian pound, as the regulator did not intervene in determining the exchange rate unless there is speculation.
Egypt’s foreign reserves surged to US$ 15.127 at the end of last August, up from US$ 14.442 billion at the end of July, buoyed by the US$ one billion Qatari deposit and the improved economic situation.
