Saudi Deposit Promotes Stability of Egypt’s Foreign Exchange Market
With Saudi Arabia’s announcement of a $5 billion deposit with the Central Bank of Egypt on Wednesday, resources advised Asharq Al-Awsat that this shift would increase the security of the overseas exchange sector and consolidate the Egyptian economic system amid severe pressure on the Egyptian pound.
In a statement posted by the Saudi Press Agency (SPA), Riyadh reported that the deposit comes as “an extension of the effectively-established historic ties and near bonds of cooperation among the Kingdom of Saudi Arabia and the sisterly Arab Republic of Egypt, and an affirmation of the depth of the deep-rooted relations.”
The SPA included that the Kingdom – in implementation of the directives of Custodian of the Two Holy Mosques King Salman bin Abdulaziz and Crown Prince Mohammed bin Salman – deposited $5 billion with the Central Financial institution of Egypt, confirming the distinguished bilateral ties at all ranges.
In the meantime, Egyptian Primary Minister Mostafa Madbouly held a meeting on Wednesday with Dr. Essam bin Saeed, Saudi Minister of Condition for Shura Council Affairs, and his accompanying delegation.
The Cabinet said in a statement that the governments of Egypt and Saudi Arabia had signed an settlement for the Saudi Public Investment Fund to spend in Egypt.
According to the statement, the agreement aims to motivate the Saudi PIF to invest in Egypt and contribute to achieving the country’s targets in attracting investments in overseas currencies. The whole volume of trade exchange in between Saudi Arabia and Egypt in 2020 exceeded about $5.5 billion, and rose to $7.5 billion this year.
Bin Saeed pointed to significant investment opportunities that would be offered to the Egyptian market through Egypt’s sovereign fund or partnership with the personal sector.
Observers informed Asharq Al-Awsat that the Saudi go came following the recent devaluation of the Egyptian pound from the US greenback and other troubles, which include fears of lack and increasing costs of essential commodities, in particular wheat and grain, as well as high oil price ranges that have an effect on the state price range.
