Three times is not always a charm: Egypt's foreign reserves dip for third month

Published December 9th, 2013 - 05:54 GMT

The Central Bank of Egypt returned aid to Qatar in December and November, which may be partly accountable for the drop in foreign reserves over the past three months (Courtesy of Gulf Business)

Egypt’s Net International Reserves (NIR) fell in November by 4.8 percent compared to October, reaching $17.7 billion, the Central Bank of Egypt (CBE) announced Sunday.

It is the third consecutive monthly fall, following drops in September and October.

Hisham Ramez. CBE governor, stated last week during the joint investment forum between Egypt and Arab Gulf countries that November’s NIR would shrink due to the state’s imports of staples such as wheat and fuel.

Ramez also pointed to the return of Qatar’s deposits for dropping foreign reserves.

Egypt returned $500 million to Qatar 2 December as the gas-rich state refused to renew deposits it made with the CBE upon their maturity.

In November, the CBE returned a similar deposit to Qatar worth $500 million.

Qatar had deposited the funds with the CBE in late 2012, under the rule of ousted president Mohamed Morsi.