Fitch global credit rating agency expected Egypt's foreign exchange reserves to erode due to the financial repercussions of the new Coronavirus, while the government banks re-raised interest rates at significant rates on savings certificates, in an attempt to attract citizens’ money, while they had successively reduced them during the months before the emergence of The virus is widespread.
"Fitch" warned that the shock of Corona will affect Egypt's external finance, GDP growth and the country's financial performance. Indicating that the disruption of the tourism sector, and the possibility of exports being affected will have a severe impact on public finances, expecting that recovery will need time to return to pre-crisis levels.
The agency warned that a global outbreak of the Coronavirus would threaten further outflows over the next six months. Foreign investors were holding $20 billion of Egyptian treasury bills denominated in the Egyptian pound at the end of February, according to Fitch.
It is expected that the current account deficit during the current year, in addition to the exit of foreign investments will put pressure on Egypt's international reserves of $45.5 billion, while the official data show that most of the cash reserves are debts and deposits due mostly to the countries of Saudi Arabia, the Emirates and Kuwait.
Source (New Al-Arabi website, Edited)
