Egypt's reserves climb 34% in April

Egypt's foreign reserves climbed to $20.53 billion in April, up 34 percent from the previous month, following the reception of new deposits of up to $6 billion from the Gulf.

Foreign reserves, which dropped sharply following the 2011 uprising, had been expected to increase In April, after Gulf Arab countries pledged $12 billion in aid and investments to Egypt during an investment conference in March.

The increase in reserves has also indirectly reduced the currency black market, Angus Blair, the chairman of business and economic forecasting think-tank Signet, told Ahram Online.

Earlier this year, the Central Bank of Egypt (CBE) devalued the pound by up to 6.9 percent in a quest to eliminate a currency black market that emerged after Egypt's 2011 popular uprising caused investors to flee and tourism revenues to tumble.

But a lack of foreign currency liquidity could push traders to return to the black market, an issue temporary solved by the rise of foreign reserves in April.