Egypt’s net international reserves (NIRs) rose slightly to $40.6 billion in July, up from the $40.5 billion recorded in June, the Central Bank of Egypt (CBE) says.
The International Monetary Fund (IMF) had in June approved the final review of Egypt’s stand-by arrangement (SBA), through which Egypt obtained $5.4 billion in loans to strengthen its second wave of economic reforms.
According to the IMF’s report on the SBA programme, foreign direct investment (FDI) inflows to Egypt are expected to rise to 2% and 2.5% of the GDP in FY2021/22 and FY2022/23, respectively, from 1.4% in FY2020/21.
The IMF also noted that Egypt is able to repay its financial obligations; however, there are risks, as uncertainties about global financial conditions and the concentration of repayment obligations in FY2023/24 and FY2024/25 are still key concerns.
According to the IMF, Egypt’s fiscal and external positions should improve, ensuring its continued access to markets and capacity to repay.
According to Minister of Planning and Economic Development, Hala El-Said, Egypt is currently in negotiations with the World Bank to secure funds for the second wave of economic reforms, which focuses on structural reforms.