2024/06/04

Egypt's Central Bank hits record high with foreign reserves

Egypt's Central Bank has recorded the highest level of foreign reserves in the country's history. On Tuesday, the bank announced that its foreign exchange reserves reached a record high of over $46 billion. This surpasses the previous record of $45.5 billion set four years ago.

Foreign reserves in Egypt rose to $46.125 billion at the end of May, up from $41 billion in April. This increase of $5.125 billion was partly due to the $35 billion Ras al-Hikma deal signed in February.

Foreign exchange reserves are crucial for financing Egypt's import bill for essential goods and production needs.

Egypt holds a diversified basket of foreign currencies in its reserves, including the US dollar, euro, British pound, Japanese yen, and Chinese yuan.

Egypt imports an average of $5 billion worth of goods and products monthly, bringing the annual total to over $55 billion., which means that the current average foreign exchange reserve can cover approximately eight months of import costs.