Turmoil hits Egypt’s foreign currency reserves - FT.com

Egypt has lost a third of its foreign currency reserves since the beginning of the year as a result of the turmoil accompanying the revolution, which swept Hosni Mubarak, former president. out of power.

Foreign currency reserves fell from $29.8bn in February to $19.4 at the end of September, according to figures published by the Central Bank of Egypt. The current reserves are estimated to cover 4.8 months of imports, down from 6.9 in April 2011.

Analysts say they are worried by the deterioration in the country’s external position, which is likely to continue for as long as the transition to elected rule drags on and remains shrouded in uncertainty. The military council, now the highest political authority in the country, promised in February to leave office within six months, but according to a schedule announced on Saturday, a new president is not likely to be elected before late 2012.

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