Saudi Arabia has deposited $5 billion in Egypt’s central bank, the official Saudi Press Agency (SPA) reported on Wednesday, as the Egyptian economy faces new economic pressures as a result of the war in Ukraine.
On March 21 Egypt devalued its currency by around 14 percent after investors had pulled billions of dollars out of Egyptian treasury markets.
Last week the government announced it was in talks with the International Monetary Fund (IMF) for potential funds and technical support to hedge against the effects of the Russia-Ukraine crisis on its economy.
Funding from additional donors is often a condition for finance from the IMF.
“The Kingdom of Saudi Arabia, to implement the directives of the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and His Highness the Crown Prince, deposited five billion dollars with the Central Bank of Egypt,” the SPA report said.
Saudi Arabia said in October it had deposited $3 billion with Egypt’s central bank and extended the term of another $2.3 billion in previous deposits. The new deposit would bring the total to $10.3 billion.
Egypt and Qatar have agreed to sign investment deals worth $5 billion, the Egyptian cabinet said in a statement on Tuesday.
The move “[confirmed] the distinguished bilateral relations between the two countries and the two brotherly peoples in all fields,” according to the Saudi Press Agency.
Saudi Arabia is carrying out a “pioneering role in supporting the sisterly Arab Republic of Egypt,” according to SPA.
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