In December 2012, the Central Bank of Egypt announced that the country’s foreign reserves had reached an alarming low of $15 billion, less than 50 percent of its holdings following Hosni Mubarak’s ouster in February 2011. At that point, the Bank was no longer capable of providing the treasury with the monthly dollar transfers necessary for the purchase of basic food and energy imports, and thus had to rely on foreign borrowing to cover these imports and debt service as well as to support local currency.
