Governor of the Central Bank of Egypt (CBE) Hisham Ramez travelled to Abu Dhabi Sunday night to seek financial assistance from the Gulf state,following the ouster of President Mohamed Morsi.
“The trip is aimed to strengthen relations with neighbouring countries, and especially at times of emergencies like this,” said Ahmed Sakr, an employee at the bank.
The visit follows a statement detailing a drop in the country’s capital and financial accounts’ balance from $3.9bn to $3.8bn, as well a decline in the outflows of portfolio investments caused by foreigners dealing in Egyptian treasury bonds.
The latest figures on the bank’s website show a $1.1bn decline of Egypt’s net foreign currency reserves to $14.922bn in June.
Economic expert Mohsen Adel attributed this to “debt repayments of $700m, extra fuel purchases to offset the national shortages that had crippled industries, and the stockpiling food supplies ahead of the holy month of Ramadan.”
The governor’s trip comes after the opening of a “support fund” account, earmarked to salvage the Egyptian economy by appealing forpublic donations; it was set up in the days following mass protests of 30 June againstMorsi.
Egypt’s budget and balance of payments have reached a state of crisis in the two and a half years since the ouster of President Hosni Mubarak in 2011.