(2 minutes read)
· The IMF approved a 12-month Stand-by Arrangement (SBA) loan to Egypt, for US$5.2 billion to address balance of payments problem arising from the COVID-19
· Central Bank of Egypt (CBE) will be using foreign reserves money to make good the drop in foreign direct and portfolio investments and to address issues related to coronavirus pandemic
In June 2020, the IMF approved a 12-month Stand-by Arrangement (SBA) loan to Egypt, for US$5.2 billion to address balance of payments problem arising from the COVID-19. Central Bank of Egypt (CBE) will be using foreign reserves money to make good the drop in foreign direct and portfolio investments and to address issues related to coronavirus pandemic.
As of now, Egypt’s foreign exchange reserves can cover about 8 months of country’s commodity imports. That is very much in the comfort zone since it is higher than the global average of about three months of commodity imports.
Egypt’s foreign exchange reserves are mainly in the form of U.S. dollar, euro, Australian dollar, Japanese yen and Chinese Yuan. In June 2020, the International Monetary Fund approved a Staff-Level agreement with Egypt on a 12-Month US$5.2 Billion. This loan came after the IMF’s executive board approved US$2.77 billion in emergency financing on May 11 to help Egypt grapple with the new coronavirus pandemic.
