Egyptian banks fund trade finance transactions with 70.8 bln USD

CAIRO, Dec. 27 (Xinhua) -- The Central Bank of Egypt (CBE) said Wednesday that Egyptian banks have funded trade finance transactions worth 70.8 billion U.S. dollars since the government's decisions to float the Egyptian pound in November last year.

By the end of February 2017, the banking system had funded 21 billion dollars in trade finance transactions since the Egyptian pound was floated.

Egypt floated its currency in November last year to limit shortage of foreign currency and face dollar shortage.

The Egyptian pound has been trading at about 17.8 to the dollar on Wednesday, according to the CBE market average.

Before the floatation decision, local currency stood at 8.8 pounds to the dollar.

Egypt, the most populous Arab country, has been suffering economic recession due to political instability and relevant security challenges following two uprisings that toppled two heads of state since 2011.

The turmoil led to a decline in the country's foreign currency reserves, foreign investments, tourism revenues and others.

Besides floating its local currency's exchange rate, Egypt started last year a strict three-year economic reform program including austerity measures, fuel subsidy cuts and tax increase.

The program is encouraged by a 12-billion-dollar loan from the International Monetary Fund. Enditem