CAIRO: Egypt’s current account deficit widened in the April-to-June quarter as imports surged and tourism was slow to bounce back to pre-COVID-19 levels, according to central bank figures released on Thursday.
The deficit widened to $5.13 billion in the quarter from $3.83 billion a year earlier, when the coronavirus pandemic was taking a heavy toll on the economy and tourism ground to a virtual halt.
A strong currency helped boost imports to $19.59 billion in the quarter from $13.83 billion a year earlier.
Tourism revenue jumped to $1.75 billion during the quarter from a low of $305 million at the height of the coronavirus crisis in April-June 2020, according to Reuters calculations using data from the bank’s latest balance of payments report.
Two years earlier, before the pandemic, Egypt reported tourism revenue of $3.18 billion for the April-June period.
Suez Canal revenue climbed to $1.56 billion during the quarter from $1.34 billion, while remittances rose to $8.05 billion from $6.21 billion.
For the whole of the financial year to the end of June, the current account deficit, hit by the pandemic, widened to $18.4 billion from $11.2 billion.
Tourism revenue dropped by 50.7 percent to $4.9 billion during the year, the central bank said.
Foreign direct investment fell to $427.2 million in the April-June quarter from $6.48 billion a year earlier, while portfolio investment rose to $2.76 billion from $910 million.
Egypt’s current account deficit widens in April-June quarter
https://arab.news/8238v
Egypt’s current account deficit widens in April-June quarter
- The deficit widened to $5.13 billion in the quarter from $3.83 billion a year earlier
Record $14.4bn rise in Saudi holdings of US Treasuries
RIYADH: Saudi Arabia increased its holdings of US Treasuries by 10.71 percent in November in what was the largest increase since data tracking began in 1974, according to the latest official data,
The Kingdom’s US Treasury portfolio stood at $148.8 billion in the month, up $14.4 billion from October.
Following the increase, Saudi Arabia moved up one place to 17th place among the largest foreign holders of US Treasuries.
Countries including Saudi Arabia invest in US Treasuries for their perceived safety, liquidity, diversification benefits, and alignment with economic ties to the US.
The Kingdom’s holdings were 17.25 percent higher in November compared with January 2025.
The allocation highlights Saudi Arabia’s preference for longer-dated US government debt as part of its foreign reserve strategy, focused on capital preservation, liquidity, and diversification amid global market volatility.
Saudi Arabia’s holdings included $106.8 billion in long-term securities, accounting for 72 percent of the total, while short-term holdings stood at $42 billion, or 28 percent.
Globally, Japan remained the largest foreign holder of US Treasury securities at $1.2 trillion, followed by the UK at $888.5 billion, mainland China at $682.6 billion, and Belgium at $481 billion.
Canada ranked fifth with holdings of $472.2 billion, followed by the Cayman Islands and Luxembourg in sixth and seventh positions, with portfolios valued at $427.4 billion and $425.6 billion, respectively.
France placed eighth with $376.1 billion, followed by Ireland at $340.3 billion and Taiwan at $312.5 billion.
Other countries included in the top 20 list include Switzerland, Singapore, Hong Kong, and Norway, as well as India and Brazil.
The trade relationship between Saudi Arabia and the US remains strong, with the Kingdom exporting SR5.20 billion ($1.39 billion) worth of non-oil goods in October, data from the General Authority of Statistics showed.
Speaking to Arab News in October, Nasser Saidi, founder and president of economic and financial advisory services firm Nasser Saidi & Associates and a former minister of economy and trade in Lebanon, said US Treasuries are a critical pillar of stability.
“Holding treasuries allows Saudi Arabia to meet its international payment obligations — finance imports, service external debt, portfolio, and capital flows — provide a buffer against oil revenue shocks, while also generating a steady, low-risk stream of income,” he said.
