Egypt forex reserves fall by $1.12bn in June
Cairo, July 7, 2013
Egypt's foreign reserves fell by $1.12 billion in June to $14.92 billion, the central bank said on Sunday, underlining the perilous state of the country's finances as a new military-backed government takes on the reins of power.
Reserves have been under pressure since the 2011 popular uprising that pushed out Hosni Mubarak and frightened away tourists and foreign investors and the dollars they brought into Egypt.
The reserves represent less than three months of imports, and only about half are in the form of cash or in securities that can easily be spent. The IMF considers three months to be the minimum safe cushion for reserves.
The army, which ousted Islamist President Mohamed Mursi on Wednesday, is working to form a new government. – Reuters