Egypt and China have signed nearly 21 economic agreements and memorandums of understanding, valued at $15 billion. The most prominent of these agreements is the agreement to fund the Egyptian Central Bank with $1 billion as a means to increase Cairo’s currency reserves.
Egypt’s Central Bank Governor Tarek Amer said that the $1 billion funding agreement signed by China is an eight year loan, which includes a three year grace period. He also added that “the new Chinese loan is expected to enhance the Central Bank’s foreign currency reserves, which amount to $16.4 billion, as well as support the state’s general budget.”
Egypt is suffering from a constant fall in its strategic foreign currency reserves due to the decline in tourism, reduced revenue, the lack of economic activity, and the fleeing of investors due to their economic and security concerns.
The Chinese president arrived in Cairo on Wednesday from Saudi Arabia for a three day visit. He is accompanied by a senior delegation consisting of representatives of major Chinese companies interested in the Egyptian market.
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