Net international reserves fell to $17.76bn at the end of November, down from $18.59bn in October, the Central Bank of Egypt (CBE) said Sunday, marking the third monthly drop in a row and hitting their lowest levels since July. Economic and banking expert Bassant Fahmy attributed the drop to importing raw materials for factories and meeting the seasonal demand of food products in winter. CBE governor Hisham Ramez announced in October that a $2bn deposit from Qatar would be returned in the coming months. At the start of November, the bank returned $500m, and in December it has returned another $500m. Meanwhile, Kuwait allowed Egypt to repay the $2bn deposit it gave Egypt over five years instead of the initial one year. Such foreign reserves are essential, Fahmy said, to meeting Egypt's fuel and diesel needs which have to be met, adding that the country spends nearly $1bn monthly to meet its needs. "If we are importing raw materials this will be a good sign that means that the economy starts refreshing," Fahmy said. The interim government promised during the Egyptian-Gulf Investment Forum on Wednesday to pay $1.5bn of the dues it owes to foreign oil companies, which it said amounted to $6bn. Foreign reserves were boosted after the influx of the Gulf aid pledged following the ouster of former President Mohamed Morsi in July, totaling to $ 12bn, raising net foreign reserves in August to $18.91bn. On the eve of the 25 January Revolution in 2011, foreign reserves had stood at $36bn.
