(MENAFN- Daily News Egypt)
Egypt's international reserves experienced a significant increase, reaching $41.057bn in April 2024. This marks a substantial rise from the $40.361bn recorded in March 2024, reflecting an overall growth of $696m.
The Central Bank of Egypt reports that the surge in reserves is partly due to the appreciation in gold reserves, which saw an increment of about $381m in April, culminating in a total of $9.384bn. This is a notable increase from the $9.003bn at the end of March. Additionally, the foreign currency reserves witnessed a modest rise of $62m, achieving a balance of $31.375bn compared to the previous month's $31.313bn. The special drawing rights also showed a remarkable uptick, recording a balance of $300m in contrast to the $47m in March, an upswing of approximately $253m.
The composition of Egypt's foreign reserves is diverse, encompassing a range of major international currencies such as the US dollar, euro, British pound, Japanese yen, and Chinese yuan. The allocation of these holdings is dynamically adjusted based on the exchange rates and stability of these currencies in the global market, adhering to a strategic plan devised by the officials at the Egyptian central bank.
The primary role of the central bank's foreign exchange reserves, which include gold and a variety of international currencies, is to ensure the provision of essential goods, service external debt repayments and interests, and mitigate economic downturns during extraordinary circumstances. These reserves are influenced by the performance of sectors that generate hard currency.
Looking ahead, JPMorgan projects a positive outlook for Egypt's foreign exchange reserves, anticipating an increase of $16.2bn in the forthcoming fiscal year 2024-2025. The bank's report further suggests a potential increment of $2.6bn in the reserves for the fiscal year 2025-2026.
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