Egypt Daily News – Egypt’s foreign exchange reserves rose to $48.5 billion at the end of May 2025, according to data released by the Central Bank of Egypt (CBE). This marks a significant increase and reflects ongoing efforts by the government to stabilize the economy and boost investor confidence.
The rise in reserves is attributed to multiple factors, including:
- Strong inflows of foreign investment, particularly following recent structural reforms and the signing of extended financing agreements with international institutions.
- Sustained remittances from Egyptians abroad, which continue to be a key source of hard currency for the country.
- Increased tourism revenues, as the sector shows signs of recovery after previous declines due to global and regional instability.
- The disbursement of a new tranche from the IMF, as part of an $8 billion support program agreed upon in March 2024, aimed at stabilizing Egypt’s macroeconomic indicators.
This is the highest level of reserves Egypt has recorded in several years, and it provides a stronger buffer to support the Egyptian pound and cover imports of essential goods and services, including fuel, food, and medicine.
Economic Context
Egypt’s economy has been under pressure from high inflation, a depreciating currency, and rising debt servicing costs. However, recent economic reforms, including a flexible exchange rate regime, subsidy restructuring, and fiscal consolidation have been instrumental in restoring some degree of macroeconomic stability.
The increase in reserves is also seen as a critical factor in improving Egypt’s credit profile and maintaining the confidence of international lenders and credit rating agencies.
