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Saudi Arabia deposits USD2bn in Egypt's central bank to bolster foreign currency reserves - report

January 31, 2014

Saudi Arabia made a fresh injection of USD 2bn in cash earlier this week into Egypt's central bank to boost foreign currency reserves, Egypt's financial daily Al Mal reported. The yet unspecified form of the cash injection enabled the central bank to conduct the fourth exceptional auction of foreign exchange since December 2012 to the tune of USD 1.5bn earlier this week. The auction was designed to fulfill outstanding client requests to finance imports of essentials goods which had lifted the exchange rate of the USD to EGP 7 .4 on the parallel market compared to an official rate of EGP 6.99 . The Saudi cash is apparently part of a fresh USD 9bn aid package by Saudi Arabia and the UAE to support Egypt's balance of payments in addition to the initial USD 12bn package by Saudi Arabia, the UAE and Kuwait announced in the wake of the uprising against former President Mohamed Morsi's rule in July 2013 .


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Source: IntelliNews - Weekly Reports


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