Egypt’s international reserves surged to a new record level, reaching $46.125bn in May 2024, compared to $41.057bn in April—an increase of $5.068bn, as reported by the Central Bank of Egypt (CBE).
The volume of foreign currencies included in the reserves also saw significant growth, rising to $36.5bn in May 2024, up from $31.375bn in April—an increase of $5.18bn, according to the CBE.
Gold balances within the reserves increased to $9.557bn in May, compared to $9.384bn in April—an additional $173m. However, the special drawing rights declined from $300m to $12m.
Prime Minister Mostafa Madbouly disclosed that the Egyptian government received $14bn from the UAE in May, representing the second instalment of the Ras El Hekma deal. Additionally, the government and the CBE have initiated procedures to convert a $6bn UAE dollar deposit at the CBE into its Egyptian currency equivalent, in cooperation with the Emirati side.
Egypt’s foreign reserve comprises a diversified basket of major international currencies, including the US dollar, European euro, British pound, Japanese yen, and Chinese yuan. The allocation of Egypt’s holdings is based on exchange rates and the stability of these currencies in global markets, subject to a plan devised by CBE officials.
The primary function of the foreign exchange reserve at the CBE, encompassing gold and international currency components, is to support essential goods, cover foreign debt instalments and interest payments, and address economic crises during exceptional circumstances, leveraging resources from sectors that generate hard currency.
