Egypt’s FX reserves hit $46.38b, surpass safety levels

Egypt’s foreign exchange reserves hit a record high of $46.38 billion by the end of June 2024, marking a remarkable increase of $13.26 billion since August 2022, a growth rate of nearly 40 per cent, said a senior official from the Central Bank of Egypt (CBE).

The official also mentioned on Monday that Egypt’s current balances are above international safety levels by the end of last June, covering 7.9 months of merchandise imports.

The increase in foreign currency reserves is due to the return of foreign currency inflows after the government’s exchange rate liberalisation.

This policy change resulted in a 200 per cent increase in inflows, with remittances of Egyptian expatriates rising by more than 100 per cent compared to flotation levels.

Attrribution: Amwal Al Ghad English