Egypt’s foreign reserves hit record $49.25 bln in August

The increase marks the highest level ever for Egypt’s reserves and reflects a gradual strengthening of the country’s external position since the adoption of a flexible exchange rate in March 2024.

NIRs are the foreign assets held by a central bank, including currencies, gold, and International Monetary Fund (IMF) special drawing rights, but excluding any liabilities.

They are used to service external debt, pay for imports, and help stabilize the currency.

Rising reserves are typically regarded as a sign of stronger financial stability and greater capacity to withstand potential external shocks.

The announcement comes ahead of the arrival in Cairo this month of an IMF mission for discussions related to the fifth and sixth reviews of Egypt’s $8 billion Extended Fund Facility, as well as the first review of a newly approved $1.3 billion Resilience and Sustainability Facility (RSF).

Completing the three reviews would unlock around $2.7 billion in financing.

Separately, Qatar has pledged to release a $7.5 billion investment package for Egypt in the coming period.