The Central Bank of Egypt (CBE) said on Tuesday that the value of the country’s foreign currency reserves reached US$44.916 billion at the end of July 2019, marking an increase of about $564.9 million from their value of $44.351 billion at the end of June 2019.
Earlier this month, CBE received $2 billion, the last tranche of the $12 billion loan from the International Monetary Fund (IMF).
The current foreign exchange reserve covers more than eight months of Egypt’s commodity imports, therefore securing the country’s commodity and strategic needs.
The main function of CBE’s foreign currency reserves, made up of gold and various international currencies, is to provide commodities, repay installments and benefits of external debt, and to cope with economic crises during exceptional circumstances.
The reserves also help when the main sources of foreign currency for Egypt (tourism, exports and investments) are impacted in times of unrest.
Other sources of hard currency, such as remittances from Egyptians abroad, which have reached record levels, and Suez Canal revenues contribute to the reserve in some months.
Edited translation from Al-Masry Al-Youm