Egypt has substantial reserves to avoid an external payments crisis but these could be seriously depleted within weeks if political protests continue, while its banks may struggle to cope with a rush of withdrawals.
In the two working days after the protests erupted last Tuesday, which was a bank holiday, Egyptians and foreign investors transferred hundreds of millions of dollars out of Egypt, currency traders estimated.
The government had $36 billion in foreign reserves at end-December, central bank figures showed. According to a Jan. 27 note by Citigroup, it also had $21 billion of additional assets with commercial banks at end-October -- its so-called "unofficial reserves".
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