Dollars inflow increased after currency float says Egypt Central Bank

Mar 10, 2017

After floating EGP, forex inflows to the equity and debt markets have been growing.

Egypt Central Bank has made it known that the inflows of dollars from remittances, investments and exports increased significantly after floating the pound last November. In a statement released on the Bank's website, it stated that between October and December 2016, balance of payments surplus grew to $5.1 billion from $1.9 billion in the third quarter of 2016, while trade deficit narrowed to $9.2 billion from $9.6 billion a year earlier and workers' remittances increased by 12 percent to $4.6 billion respectively. Following prolonged forex crisis, Egypt floated its currency last November in a
bid to end the foreign currency crisis that crippled economic growth, paving the way to a $12 billion International Monetary Fund loan. Since floating of the Egyptian pound, forex inflows to the equity and debt markets have been growing. Prior to the floating, tourism revenue declined to $1.6 billion from $2.7billion while the current account recorded deficit of $9.6 billion. Between October and December 2016, the current account grew by 6.4 percent compared with the previous quarter, and by 13.1 percent compared with the year-earlier period.