Net foreign reserves reached a new high of USD 46.6 bn at the end of August 2024, up USD 108 mn from July’s record figure of USD 46.5 bn, according to CBE data.

Here’s the breakdown, according to CBE data:

  • Foreign currency reserves remained essentially flat, edging up by 9 mn and staying in the USD 36.3 bn bracket in August.
  • Gold reserves rose by 379 mn to USD 10.3 bn, up from USD 9.9 bn in July.
  • Special drawing rights brought the count down, falling by USD 282 mn to USD 20 mn, down from USD 302 mn in July.

Sound smart: Special drawing rights — also known as SDRs — are international reserve assets created by the IMF. While they are not a currency, they are a form of international money that can be used by countries to supplement their official reserves. They are primarily used for IMF transactions, such as repaying loans or increasing quotas.

This is a good sign after a rocky start to August: A global market meltdown in early August saw foreign investors sell some USD 600 mn worth of local debt instruments as they poured their capital into safe-haven assets. However, Prime Minister Moustafa Madbouly was at pains to emphasize that these hot money outflows represented no more than 7-8% of foreign investors’ holdings of our debt instruments and that they had been paid out in market liquidity, not the CBE’s FX reserves.

Remember: With this latest data release from the central bank, Egypt’s net foreign reserves have increased by almost USD 11.3 bn in the six months since the government announced the USD 35 bn Ras El Hekma agreement, which gave the central bank the buffer it needed to float the EGP, helping attract FX liquidity back to the official banking system and paving the way for more international funds. In February — the month immediately before the float — foreign reserves stood at USD 35.3 bn.

Tags: