Net foreign reserves rose to USD 48.1 bn at the end of April 2025, marking a USD 387 mn increase from March, according to data from the Central Bank of Egypt. Net foreign reserves continued to increase m-o-m for the 32th consecutive month.

Here’s the breakdown, according to CBE data (pdf):

  • FX reserves fell USD 812 mn to 34.3 bn in April, down from 35.1 bn in March;
  • Gold reserves increased some USD 1 bn to USD 13.6 bn, up from USD 12.6 bn;
  • Special drawing rights rose USD 176 mn to USD 194 mn, up from just USD 18 mn.

What the experts say: Banking expert Hany Abou El Fotouh described the figure as a “historic jump,” but cautioned that the figure should be looked at in relation to external debt. He noted that while some of the increase came from real inflows like tourism revenues, remittances, and debt investments, “the largest chunk of the increase came from external financing — be it through international loans, regional deposits, or bond issuances.” This, he said, ties the rise in reserves to an increase in external debt. “From an economic perspective, there must be a balance to ensure this improvement is sustainable without a large rise in debt obligations.”

Real sustainability still in question: “The number is reassuring, but it could be temporary if not supported by actual increases in production and exports,” he said, adding that if reserves are largely dependent on borrowing, they will fall again when repayments come due. He emphasized that “the rise in reserves gives the state better capacity to meet short-term external obligations,” but said Egypt needs to “control the pace of borrowing, rationalize spending, and direct loans toward productive projects instead of covering import gaps.”

Egypt’s net foreign reserves have increased by USD 12.8 bn since the government announced the USD 35 bn Ras El Hekma agreement that coincided with the float of the EGP and FX liquidity returning to the official banking system, paving the way for more international funds. In February 2024 — the month immediately before the float — foreign reserves stood at USD 35.3 bn.

Tags: