Debt sales push Egypt’s foreign reserves to record $55B

Egypt’s foreign reserves rose to $55 billion in June, up about 3.6% from the previous month, the fastest pace of growth in nearly two years, according to data published by the Central Bank of Egypt (CBE).

The increase was driven by a rise of about $4 billion in the central bank’s foreign currency holdings, marking the fourth consecutive monthly increase and pushing reserves to a new record high.

The rise was partly offset by a decline of about $2 billion in the value of gold held in the foreign reserves in June, driven by a fall in global gold prices, Heba Mounir, banking and macroeconomics analyst at HC Securities & Investment, told Al Manassa.

Gold, which accounts for about a third of the reserves, saw global prices fall sharply during the month amid expectations of higher US interest rates.

Mounir said the increase in foreign reserves reflected improved foreign currency liquidity from several sources. The government issued yen-denominated Samurai bonds equivalent to about $500 million, as well as 12-month dollar-denominated treasury bills worth $462 million.

The improved liquidity also reflected a rise in foreign investors’ net purchases in the secondary market for treasury bills, which reached about $6.2 billion in June, Mounir added.

The government has pledged to the International Monetary Fund (IMF) that it will raise reserves to $55–$56 billion before the current loan program ends at the end of 2026. Notably, reserves did not fall even in March, when the local debt market saw strong outflows due to risks linked to the Iran war.