Egypt: Foreign Reserve Down By U.S. $206 Million in May

The country's foreign currency reserves were down by $206 million to $17.283 billion in May compared with $17.489 billion in April, the Central Bank of Egypt said Thursday 05/06/2014.

The decline is deemed acceptable in light of the current circumstances especially that the government offered last month an exceptional tender to fulfill the local market's needs for foreign currency, said deputy chairman of the Egyptian Association for Financing and Investment Studies (EG-Finance) Mohsen Adel.

Adel expected that economic reform and investment incentive programs will increase returns of Egyptian exports and relatively decrease the size of imports with the government banning foreign commodities from being included in tenders if they had local equivalents.

The foreign reserve allows the government to purchase basic commodities, such as wheat and petroleum products, to pay off premiums and interest on foreign debts.

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