Central Bank: Foreign reserves increased to $35.3 billion at the end of February

Books – Ahmed Yaqoub

Tuesday, March 5, 2024 05:00 PM

The Central Bank of Egypt said today that net foreign reserves rose to $35.310 billion at the end of last February, compared to about $35.250 billion at the end of January 2024, an increase of $60 million.

Egypt imports the equivalent of an average of 7 billion dollars a month in goods and products from abroad, with an annual total estimated at more than 70 billion dollars. Therefore, the current average of foreign exchange reserves covers about 5 months of merchandise imports to Egypt, which is higher than the global average of about 3 months of Merchandise imports to Egypt, ensuring Egypt’s needs for basic and strategic goods.

The foreign currencies in Egypt’s foreign reserve consist of a basket of major international currencies, which are the US dollar, the single European currency “Euro”, the British pound, the Japanese yen, and the Chinese yuan, a percentage of which Egypt’s holdings are distributed on the basis of the exchange rates of those currencies and the extent of their stability in international markets, which is It changes according to a plan drawn up by officials of the Central Bank of Egypt.

The primary function of the foreign exchange reserve at the Central Bank, with its components of gold and various international currencies, is to provide basic commodities, pay installments and interest on foreign debts, and confront economic crises, in exceptional circumstances, with resources from sectors generating hard currency, such as exports, tourism, and investments, being affected. Due to the unrest, other sources of hard currency, such as remittances from Egyptians abroad, which have reached a record level, and the stability of Suez Canal revenues, contribute to supporting the reserve in some months.

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