Egypt’s foreign reserves are climbing on the back of economic reforms and a stronger real economy rather than speculative “hot money” inflows, Prime Minister Moustafa Madbouly said Wednesday.
The prime minister told a weekly press conference that exports had risen more than 22 per cent in recent months, while remittances from Egyptians abroad, tourism revenues and other core sectors had also expanded, strengthening sustainable foreign currency resources despite geopolitical headwinds affecting the Suez Canal.
He said easing inflation was helping both the government and private sector to cut profit margins on essential goods, improving affordability for consumers.
Annual inflation slowed to 13.1 per cent in July from 14.4 per cent in June, with second-quarter inflation averaging 15.3 per cent compared to 29.4 per cent a year earlier, “roughly half the previous level,” Prime Minister Madbouly said, crediting the government’s policies with containing prices and bolstering financial stability.
