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Saudi Arabia extends term for $5bn deposit in Egypt Central Bank

People walk past the Egyptian Central Bank in downtown Cairo on November 3, 2016. - Egypt floated the country's pound as part of a raft of reforms, after a dollar crunch and exorbitant black market trade threatened to grind some imports to a halt. (Photo by KHALED DESOUKI / AFP) (Photo by KHALED DESOUKI/AFP via Getty Images)

Saudi Arabia has extended the term for a $5 billion deposit it made to Egypt's Central Bank, state news agency, SPA, said on Tuesday.

SPA said the extension came in accordance with the directives of Saudi King, Salman bin Abdulaziz, "as an extension of the historical ties and close bonds of cooperation" between the two countries.

SPA explained that, by extending the deposit's term, Saudi Arabia would continue to provide generous support to boost the Egyptian economy.

The Saudi decision comes at a time when Egypt is facing challenges related to the abundance of foreign exchange in the local market, which prompted the Central Bank to meet with the heads of operating banks, on Monday, to search for channels to boost foreign exchange in the market.

Meanwhile, Egypt is about to sign a new $3 billion financial agreement with the International Monetary Fund, out of its total financial needs of $12 billion.

READ: Qatar pumps $1bn into Egypt Central Bank amid ongoing economic failure

SPA said the concerned authorities in Saudi Arabia and Egypt are continuing cooperation to enhance coordination according to various mechanisms, especially with regard to pumping numerous investments into the Egyptian market in foreign currencies, in addition to Saudi deposits.

Saudi Arabia hoped that extending the deposit's term and other steps would contribute to opening new financing channels for Egypt with regional and international organisations, including facilitating the completion of the International Monetary Fund financing deal.

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AfricaEgyptMiddle EastNewsSaudi Arabia
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