Cairo, Egypt – Egypt’s foreign exchange reserves rose $127.9 million by the end of February to $34.352 billion, compared to $34.224 billion by the end of January, according to the Central Bank of Egypt (CBE).
Foreign currencies in Egypt’s foreign reserves include the US dollar, euro, Australian dollar, Japanese yen and Chinese yuan.
Egypt’s economy has come under severe pressure over the past year, with the Egyptian pound tumbling, foreign currency drying up, and inflation soaring. The Egyptian pound has depreciated by nearly 50 percent against the dollar since March 2022. The local economy has been negatively impacted by the severe dollar scarcity that has stifled imports and created a backlog of cargo at ports.
Since there hasn’t been much foreign investment outside of the oil and gas industry, remittances, Suez Canal transit fees, and tourism receipts have become extremely important.
Some of the causes date back decades, such as failed industrial development and export policies that created a persistent trade deficit.
The economic growth forecast at 4 percent to 5 percent this yea ris blunted by the population surge with many Egyptians complaining their standard of living has been eroded. In 2021, Egypt’s annual population growth was 1.7 percent, according to the World Bank.
President Abdel Fattah al-Sisi has also blamed rapid population growth for the country’s economic struggles.
Since 2020, authorities have pointed to external shocks including the COVID-19 pandemic and the war in Ukraine.
Meanwhile, the country raised the price of some types of gasoline last week, the latest hike to hit the cash-strapped Middle East country.
The petroleum ministry said in a statement that it was raising the price of regular, midgrade and premium gasoline mixes of gasoline from between 0.75 to 1 Egyptian pound per liter (around 2.3 to 3.3 cents).
The raise will likely push up the prices of other goods and services across Egypt. However, the price of diesel, the most commonly used fuel for transport of people and goods in Egypt, is unaffected.