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The Central Bank of Egypt (CBE) said on Monday that the country’s net international reserves grew to $49.25 billion in August 2025, compared to $49.04 billion in July. This means Egypt recorded a monthly increase of about $214 million, even as the structure of the reserves shifted between gold, foreign currencies, and Special Drawing Rights (SDRs).
According to the bank’s latest data, gold holdings were the biggest driver of growth. The value of gold rose sharply to $14.09 billion in August from $13.64 billion the month before, a jump of $449 million. Analysts say the surge reflects higher global gold prices and adjustments in the central bank’s portfolio.
On the other hand, foreign currency reserves recorded a slight decline. The stock of foreign currencies fell by $94 million to settle at $35.12 billion, showing the impact of lower inflows from some sectors of the economy. In the same period, Egypt’s Special Drawing Rights – the IMF-created international reserve asset – also dropped by $140 million to $43 million.
Despite these changes, Egypt has added about $2.14 billion to its foreign reserves since the beginning of 2025. At the close of 2024, reserves stood at $47.11 billion, meaning the country has managed to grow its buffer even as global markets faced uncertainty and inflationary pressures.
Egypt’s international reserves are made up of a mix of major global currencies, such as the United States dollar, the euro, the British pound, the Japanese yen, and the Chinese yuan. The CBE says its strategy is to keep a diversified basket that reflects both market stability and the strength of these currencies.
Foreign reserves play an important role in Egypt’s economy. The funds are used to finance imports of essential goods like food, fuel, and medicine, as well as to repay foreign debt and interest. Reserves also serve as a cushion against economic shocks, particularly during times when inflows of hard currency from tourism, remittances, and Suez Canal revenues are weaker.
Egypt relies heavily on these sectors to generate foreign exchange. Tourism is one of the country’s largest income earners, but it has faced repeated disruptions due to regional instability and global economic slowdowns. Remittances from Egyptians abroad, however, have remained strong, helping the economy withstand external pressures. Similarly, revenues from the Suez Canal, a vital global shipping route, continue to provide steady foreign exchange despite occasional challenges in international trade.
Economists say the August figures reflect the government’s attempt to balance its foreign reserve composition while responding to global market trends. With gold values climbing, the central bank appears to be using its bullion holdings as a hedge against volatility in currency markets.
The reserve increase is also significant as Egypt continues to service its external debt, which has been growing over the years. Maintaining strong reserves is seen as vital to preserving investor confidence and protecting the Egyptian pound from further depreciation.
Looking forward, financial analysts warn that Egypt’s reserves could face pressure if external conditions worsen, especially if global oil prices rise or foreign investment inflows remain weak. However, the country’s ability to grow its net reserves by more than $2 billion since January is being viewed as a positive sign that Cairo is still in control of its economic buffer.
For ordinary Egyptians, stronger reserves may not immediately translate to relief from rising prices of imported goods, but experts believe a healthy reserve position will help reduce financial instability and protect the country from severe currency shocks.
