CBE data also showed that the remittances increased by three percent in the fourth quarter (4Q) of FY2021/2022 (April-June 2022) to record $8.3 billion, up from $8.1 billion in the corresponding quarter of FY2020/2021
On the other hand, remittances slightly declined in June to $2.8 billion, down from $2.9 billion posted in June 2021, according to the CBE.
Egypt’s FY2021/2022 wrapped up at the end of June 2022.
Since the onset of the Russian-Ukrainian war, Egypt has witnessed a downturn in its reserves, as the country utilised a portion of it to meet the financial needs of the local market.
Egypt’s net international reserves (NIRs) declined by $230 million in July to $33.1 billion, down from $33.3 billion at the end of June 2022, the CBE said on Sunday.
Prime Minister Mostafa Madbouly said on Monday that Egypt is in final stage of talks with the International Monetary Fund (IMF) for a new loan deal. This loan is expected to play a role in replenishing the country’s hard currency reserves.
As a safe haven in times of crisis, Egypt has recently increased its assets of gold bars in response to global inflationary wave and elevating oil and gas prices fuelled by the war in Ukraine.
According to the World Gold Council’s (WGC) recent report on global gold demand, Egypt placed second – following Turkey– on the list of countries purchasing gold bars in the first half (1H) of 2022.
Egypt raised its assets of gold bars to a total of 44.2 tons in 1H of 2022. In the 1Q of 2022, Egypt topped list of gold purchasers globally.