Egypt's foreign reserves reach dangerous level
(ME / Africa | Event driven) It became public through the central bank website two days ago that Egypt's foreign reserves reached dangerous level: $13.5 billion, in February. The figure is down from $13.6 billion at the end of January. We also noticed that dollar auctions are falling in volume since last year. These sales are the main way the country has access to foreign exchange.
- Possible change in consensus estimate of 2013 economic growth figures.
- Protest and social discontent in 2013Q1 could increase.
- $250 million was offered by the U.S. Secretary of State to help to country face the short run challenges of economic reforms, but this certainly will not be enough to improve the current macro situation.
- The current FX reserves can only cover over just three months' imports.
- Negotiation of $4.8 billion loan with the International Monetary Fund highly important for the fate of the country in 2013.