SCZONE showcases investment opportunities to eight Japanese companies    Egypt urges Israel to accept Gaza deal amid intensifying fighting    Egypt, ADIB explore strategic partnership in digital healthcare, investment    Egypt's PM meets Tokyo governor, witnesses signing of education agreements    Egypt welcomes international efforts for peace in Ukraine    Al-Sisi, Macron reaffirm strategic partnership, coordinate on Gaza crisis    Egypt's Sisi, France's Macron discuss Gaza ceasefire efforts in phone call    Contact Reports Strong 1H-2025 on Financing, Insurance Gains    Egypt, India's BDR Group in talks to establish biologics, cancer drug facility    AUC graduates first cohort of film industry business certificate    Egypt to tighten waste rules, cut rice straw fees to curb pollution    Indian tourist arrivals to Egypt jump 18.8% in H1-2025: ministry data    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt to inaugurate Grand Egyptian Museum on 1 November    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Egypt cut dollar share of reserves over past 18 months
Published in Daily News Egypt on 06 - 03 - 2007


Reuters
CAIRO: Egypt has diversified its foreign exchange reserves over the past 18 months by cutting its holding of U.S. dollars to around 57 percent of the total from more than 90 percent, central bank Governor Farouk El-Okdah said on Monday. The weighting of reserve currencies now matched the country s debts and trading pattern, he told a news conference. More than 90 percent of reserves were in dollars. I now declare that this policy has been changed 1-1/2 years ago ... Reserves are now about 57 percent in dollars, Okdah said. Some 43 percent of Egypt s debt is denominated in currencies other than the dollars such as euros, yen and sterling, the governor added. Egypt s net foreign reserves rose to $26.20 billion at the end of February, from $26.08 billion at the end of January, the central bank said. Reserves at the end of February 2006 stood at $22.37 billion. Okdah said the central bank has been buying foreign currency from the market to increase its reserves because the market is very liquid . He said it was up to market forces to determine the exchange rate of the Egyptian pound. Finance Minister Youssef Boutros-Ghali said last week that the dollar would be worth less than five Egyptian pounds if the market was left alone without intervention. The current rate is about 5.7. The central bank governor predicted inflation in Egypt would start falling in May or June 2007 after the effects of fuel price increases and bird flu wear off. The government raised fuel prices by up to 30 percent in July last year. An outbreak of bird flu in February 2006 has helped drive up food prices, economists say. Monetary policy does not target the inflation rate that is a result of (price) shocks...Monetary policy is not flip-flop, rising with eggs and falling with chicken, Okdah said. Officials had predicted inflation would start to fall early this year but the latest wholesale price index, available on Monday, showed an increase of 15.9 percent in the year to the end of January. The latest figure for consumer inflation is 12.4 percent, for the year to January. He said foreign direct investment in Egypt in the July-December 2006 period was $7.2 billion, compared with $3.3 billion in the same period of 2005 and more than the total for the whole of the 2005/6 financial year, which ended last June. This is a vote of confidence in the economy, he said. Of the total foreign investments, Okdah said $2.1 billion were in the energy sector, $3.5 billion were to set up new companies and $2.6 billion from privatization including the sale of 80 percent of Bank of Alexandria for around $1.6 billion. The governor said capital outflows were about $1 billion during the first half of the current fiscal year.


Clic here to read the story from its source.