Egypt in talks with Saudi Arabia to renew $5.3bn central bank deposits

Egypt is holding negotiations with Saudi Arabia to renew $5.3 billion in deposits at the Central Bank of Egypt, as the deposits are set to mature this October.

The discussions are focused on determining the renewal period, according to a source who spoke to Asharq Bloomberg.

The source explained that talks are ongoing to set a new term for the deposits, but no final agreement on the duration has been reached yet.

The $5.3 billion in deposits stem from financial support Saudi Arabia has provided to Egypt since 2014. In addition, Saudi Arabia holds short-term deposits worth $5 billion at the Central Bank of Egypt, which are renewed annually.

This brings the total value of Saudi deposits at the Central Bank of Egypt to around $10.3 billion, including both the deposits maturing this October and the short-term deposits.

On November 29, 2022, Saudi Arabia announced the extension of a $5 billion deposit at the Central Bank of Egypt, as part of efforts to support economic stability and strengthen financial and investment cooperation between the two countries, according to the Saudi Press Agency.

At the time, Saudi Arabia stated that the extension coincided with ongoing coordination between the relevant authorities in both countries to boost Saudi investments in Egypt's foreign currency market and open new financing channels with regional and international institutions.

The talks over renewing the deposits come amid continued economic cooperation between Cairo and Riyadh. Trade between the two countries reached about $18 billion in 2023, according to data from Saudi Arabia's General Authority for Statistics.

Saudi exports to Egypt were valued at approximately $11.5 billion, while imports from Egypt totaled $6.61 billion.

Mineral products topped Saudi exports to Egypt at $8.63 billion, while mineral products also led imports from Egypt at $3.72 billion.