(Adds details, background)
CAIRO, June 4 Egypt's foreign reserves jumped to
$31.126 billion at the end of May from $28.641 billion at the
end of April, boosted by last month's Eurobond sale, the central
bank said on Sunday.
Egypt, which has been struggling to revive its economy since
a 2011 uprising, sold $3 billion of Eurobonds in May, twice as
much as targeted.
That confirmed growing foreign appetite for the country's
debt as it follows through with economic reforms aimed at
cutting a budget deficit and luring back investors.
In November Egypt abandoned its currency peg of 8.8 per
dollar and floated the pound, which then halved in value. It
also raised its key interest rates by 300 basis points, helping
Egypt to clinch a $12 billion International Monetary Fund
Last month, the central bank raised its key interest rates
by another 200 basis points after inflation reached a
The moves helped the country lure back foreign investors to
its treasury sales. Foreign investors in Egyptian government
securities rose to 136 billion Egyptian pounds ($7.52 billion)
in May from 120 billion pounds a week earlier.
Last month's Eurobond sale, which reached Egypt's central
bank on May 31, was the second such sale this year. Egypt had
earlier raised $4 billion at a Eurobond sale in January that
also exceeded expectations.
The steady climb in Egypt's foreign reserves since it
floated the pound brings them closer to pre-2011 levels of
around $36 billion.
($1 = 18.0800 Egyptian pounds)
(Reporting by Eric Knecht and Arwa Gaballa; Editing by