Egypt International Reserves Fall for Third Consecutive Month

Egypt’s net international reserves dropped for the third month in a row in September to $16.3 billion, almost wiping out the gains from Gulf Arab aid received this year.

Reserves dropped about $1.8 billion from August, the most this year, according to central bank data. Egypt had $1.25 billion in U.S.-backed bonds mature in September, which central bank Governor Hisham Ramez said will be repaid on time.

Egypt’s reserves had tumbled to $15.3 billion in March before Gulf Arab states extended $6 billion in aid. The country is planning a second Eurobond sale this year after raising $1.5 billion in June, according to Finance Minister Hany Kadry Dimian. The current level of reserves is enough to cover about 3 months worth of the nation’s merchandise imports, according to data compiled by Bloomberg.