Foreign reserves inch up to US$16.4 billion in October

Egypt’s foreign reserves rose slightly to reach US$16.415 billion at the end of October, compared to $16.335 billion at the end of September, the Central Bank of Egypt reported on Wednesday.

The rise in reserves in October is a turnaround after three successive months of declines, but still leaves reserves at a lower level than the $18.096 billion recorded in August.

The fall in reserves in recent months put pressure on Egypt’s exchange rate and stoked tension between members of the cabinet — including the investment minister, who said that Egypt should defend its foreign reserves — and the Central Bank governor, who asserted the Bank’s independence.

In mid-October, the Central Bank allowed the pound’s official interbank exchange rate to devalue from LE7.73 per dollar to LE7.93 per dollar. Experts predict the pound will continue to fall.

The Minister of Investment, along with most of the cabinet’s economic team, survived a cabinet reshuffle in September. Central Bank Governor Hesham Ramez submitted his resignation on October 21, declining to continue in the post after his current term ends later this month.