Egypt’s NIRs have maintained an upward trajectory since March 2024, accelerating following CBE corrective measures, the currency devaluation, and International Monetary Fund (IMF) reforms. Reserves rose from $35.4 billion to $52.6 billion by January 2026, while inflation fell from 40 percent—recorded in core inflation in July 2023—to around 12 percent in January 2026, Abdalla said, according to a statement.
The remarks were made during the second edition of the AlUla Conference on Emerging Market Economies in Saudi Arabia, organised by the Saudi Ministry of Finance and the IMF.
The conference brought together finance ministers, central bank governors, policymakers, leaders of international organizations, and global investors to discuss challenges, including high debt levels, financing needs, constrained fiscal space, monetary policy, and reforms aimed at strengthening resilience to economic shocks.
Egypt’s NIRs rose at the end of April 2024 to their highest level in four years, reaching $41 billion, up from $40.4 billion at the end of March, following a six-percent interest rate hike by the CBE.
The move aimed to contain high inflation, stabilise prices in the local market, bolster hard currency liquidity, improve remittance inflows, and safeguard Egypt’s monetary stability.
The Egyptian government has been implementing fiscal and monetary reforms to pursue, among other targets, economic growth of 7.5 percent by 2030, driven by exports, human capital development, and expanded private sector participation, according to the government’s economic narrative.
The developments come as the IMF Executive Board is set to discuss the fifth and sixth reviews of Egypt’s $8 billion Extended Fund Facility (EFF) programme and the $1.3 billion Resilience and Sustainability Facility (RSF) during the first quarter of 2026, following a staff-level agreement reached in December 2025.
Upon completion of the EFF reviews, Egypt is expected to receive a $2.3 billion financing tranche, including $300 million under the RSF.
The IMF has also forecast continued growth, projecting Egypt’s real GDP growth to reach 4.7 percent in the 2025/2026 fiscal year, up from the 4.5 percent projected in October, and to rise further to 5.4 percent in FY2026/2027.
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