Higher gold prices drive foreign reserves to $57.2B 

Egypt's foreign exchange reserves rose to $57.2 billion at the end of August, as a rise in the value of its gold holdings outweighed a decline in its foreign currency holdings, Central Bank of Egypt data showed.

The increase does not reflect a broad-based buildup of reserves. The rise in gold holdings largely reflects higher international prices rather than new purchases, while the decline in foreign currency may point to increased demand for dollars to pay for imports.

The foreign currency component of the reserves fell by about $1.2 billion in August to $37.5 billion, while the value of the central bank’s gold holdings jumped to just over $19 billion from $17.1 billion the previous month, an increase of $1.9 billion.

Ibrahim Adel, a macroeconomic analyst at Mubasher Trade, told Al Manassa that the increase in the value of gold reserves was not due to the central bank purchasing additional gold in August. Instead, it was likely driven by “price gains” from revaluing existing holdings as global gold prices rose.

Gold prices rose globally by about 10%, driven by demand for safe-haven assets amid concerns over the fallout from the US-Israeli war on Iran, as well as weaker confidence in the US dollar as a safe haven amid rising US debt.

By contrast, Adel said the decline in foreign currency holdings may have been driven by payments for Egyptian imports during the month.

According to the latest data from the Central Agency for Public Mobilization and Statistics, the total value of Egyptian imports rose to $12.4 billion in June 2026, about 50% higher than in the same month a year earlier. The increase was driven by higher imports of commodities including natural gas and raw gold.