Egypt’s net foreign reserves fall by $232 million in July

Egypt’s net foreign reserves fell to $33.143 billion at the end of July from $33.375 billion at the end of June, a central bank data showed on Sunday.

Foreign reserves have been declining since March following the outbreak of the Russian war in Ukraine, after being just above $40 billion since November 2020.

In March, the foreign reserves fell by nearly $4 billion to $37.082 billion from $40.994 billion at the end of February as the war in Ukraine caused foreign investors to flee Egyptian treasuries, putting pressure on the currency, and in return prompting the central bank to devalue the pound by 14 percent on March 21.

Foreign currencies in Egypt’s foreign reserves consist of U.S. dollar, euro, Australian dollar, Japanese yen, and Chinese yuan. The provision of foreign exchange, including gold and various international currencies, aims to pay for imports, repay foreign debts, and cope with any economic crises in exceptional circumstances.