The Central Bank of Egypt (CBE) announced, on Sunday, that its net international reserves fell to $33.143bn in July 2022, compared to $33.375bn in June, a decrease of about $232m.
Egypt’s international reserves consist of foreign exchange (FX), gold, special drawing rights (SDRs), and net loans from the International Monetary Fund (IMF).
The CBE revealed that the bank’s gold reserves reached $7.061bn in July 2022, down from $7.314bn in June, a decrease of $253m. The FX reserves also declined to $25.855bn in July, from $26.017bn in June, a decrease of $162m. Meanwhile, the SDRs increased to $232m, compared to $50m, an increase of $182m.
The purpose of the international reserves is to support the local currency, fulfil the country’s external obligations, and fund its imports of basic commodities for several months. The size of the international reserves for any country represents a source of strength or weakness according to its value and ability to meet the country’s foreign exchange obligations.
The resources of the Suez Canal Authority, tourism, export, foreign investment, and remittances are the most important resources of Egypt’s FX reserves.
