Cairo – Mubasher: Prime Research expected Egypt’s foreign reserves to stand at $25 billion by the end of 2016 on the first tranche of the International Monetary Fund’s (IMF) loan and the issuance of dollar-denominated bonds, according to a report issued on Wednesday.
“FX reserve is likely to reach $22 billion by the end of November after receiving the first $2.75 billion tranche of the IMF loan, which will be granted within a week most probably, and $750 million proceedings of the 4G license”, Prime said.
In case the African Development Bank grants Egypt the second credit tranche worth $500 million, reserves will increase to $23 billion by the end of 2016, prime added.
This $23 billion reserves could reach $25 billion by the end of December if the dollar-denominated bonds are issued at $2.5-2 billion, the research firm added.
The increase in FX reserves will enable the Central Bank of Egypt to hold any exceptional auctions to offset supply and demand pressures for absorbing the shock of flotation.
