Egypt’s exchange remains top Arab performer in 2017

The Egyptian pound dropped again against the dollar on the black market on 21 July 2016, extending its recent decline despite central bank efforts to close the gap between demand and supply in the dollar-starved economy. Egypt, which relies heavily on imports, is facing a shortage in foreign currency inflows after a 2011 uprising drove tourists and foreign investors away, causing the country's reserves to tumble to $16.56 billion from $36 billion. A black market for dollars has sucked up liquidity from the banking system while the central bank kept the pound artificially strong and rationed dollars through weekly auctions, putting a strain on foreign reserves. (Photo by Fayed El-Geziry /NurPhoto via Getty Images)

The head of the Egyptian Exchange says its benchmark index has made significant gains in 2017 thanks to economic reforms deemed key to salvaging Egypt’s economy.

Mohamed Farid told reporters Tuesday the EGX 30 has increased about 19 percent and annual trading has exceeded LE 292 billion (about $16.38 billion) this year.

Farid says the index has been the driving force behind making the Egyptian Exchange the top market in the Arab world. He says purchases by foreign investors registered LE 73 billion (about $4.1 billion) in 2017.

Farid added that the hikes reflect an improvement in the Egyptian economy.

Egypt has introduced economic reforms aimed at salvaging the country’s economy, which has been struggling since the 2011 uprising that toppled longtime autocrat Hosni Mubarak.