The increase extends a gradual build-up in reserves, supported by foreign inflows and external financing, as authorities seek to stabilize the economy after a period of currency volatility and foreign exchange shortages.
Reserves have been rising since 2024, when Egypt secured a support package led by the International Monetary Fund (IMF), alongside funding from regional and international partners, helping to ease pressure on the balance of payments and restore investor confidence.
The improvement has also coincided with a shift to a more flexible exchange rate adopted by the CBE, which narrowed the gap between official and parallel market rates and improved foreign currency availability.
CBE policy measures introduced in March 2024, including a six percent interest rate increase and a further devaluation of the pound, contributed to renewed foreign portfolio inflows into local debt markets and a recovery in foreign currency-earning sectors such as tourism, remittances, and Suez Canal revenues.
Maintaining higher reserve levels remains central to Egypt’s ability to meet external obligations, support the currency, and manage exposure to global financial volatility amid ongoing geopolitical tensions and tighter global monetary conditions.
At current levels, reserves cover several months of imports and remain above commonly used adequacy thresholds, providing a stronger buffer against external shocks than in previous years.
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