CAIRO: Egypt’s foreign exchange reserves fell to $17.8bn in November from $18.6bn in October, the central bank said, their lowest level since an inflow of funds from Gulf states after the July 3 ouster of president Mohammed Mursi.
The reserves stood at $15bn in November 2012. Egypt’s foreign exchange reserves, which stood at $36bn on the eve of the 2011 uprising against former president Hosni Mubarak, have been hit by political turmoil since his downfall.
Relations between the two countries deteriorated after the army ousted Mursi in July following mass protests against his rule.
“It’s related to the repaying of the Qatari funds and possibly the settlement of dues to oil companies. The combined effect of both probably added to the drop,” said Hany Genena, head of research at financial group Pharos Holding.
The Egyptian government plans to pay $1.5bn in arrears to foreign oil companies “in days”, Oil Minister Sherif Ismail said last week. It also agreed a timetable to pay $3bn of the $6.3bn it says it owes those companies.
reuters
