Over the past few years, Egypt’s net international reserves (NIR) have been hit by various global political and economic shocks. This negatively affected foreign exchange inflows to Egypt, especially those coming from tourism.

On the other side, global value chain disruptions caused a worldwide inflationary wave, which increased Egypt’s import bill and reduced its NIR. However, the Central Bank of Egypt’s (CBE) latest data showed that NIR hit a historic level of $46.94 billion in November 2024. With this amount, Egypt’s NIR rebounded and even exceeded its pre-COVID-19 levels.

In this Factsheet, we will explore the journey of Egypt’s NIR over the past five years, delving into its key components and identifying the country’s regional position in reserve holdings.

• In the third quarter (Q3) of 2024, Egypt ranked 6^th in the Middle East and North Africa (MENA) region in terms of international reserves value. Moreover, Egypt was the 7^th among MENA countries in terms of holding foreign exchange reserves and the 4^th for gold reserves.
• In November 2024, Egypt's NIR record high at $46.95 billion, reflecting a remarkable year-on-year (YoY) 33.48% increase from $35.173 billion in November 2023. This surge was largely driven by the Ras El Hekma Deal, with the most significant growth in foreign currency occurring in March and May during the receipt of the deal’s first and second installments.
• Egypt’s NIR consists of foreign currencies, gold, and special drawing rights (SDRs) from the International Monetary Fund (IMF).
• Foreign currencies represented around 77% of total reserves last November, while gold accounted for 23% and SDRs made up only 0.1%.
• As of November 2024, Egypt's gold reserves stood at $10.78 billion, marking a 31% YoY growth and a substantial rise from $3.12 billion in November 2019. The most notable increase occurred in 2022, when gold reserves surged by 68%, equivalent to 47 tons, including a major acquisition of nearly 44 tons by the CBE in February 2022.
• Despite global disruptions and regional tensions impacting tourism and Suez Canal revenues, foreign currency inflows, particularly from the Ras El Hekma deal, played a crucial role in strengthening foreign currency reserves. In November 2024, these reserves increased by 34%, reaching $36.14 billion, compared to $26.88 billion in November 2023.

By: Amina Hussein

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