The Central Bank of Egypt (CBE) revealed an increase in the balances of gold listed in the foreign exchange reserve to reach US$9.557 billion at the end of May, compared to $9.384 billion at the end of April – an increase of about $173 million.
In a statement on Tuesday the CBE added that the value of foreign currencies included in the cash reserve reached $36.5 billion in May, compared to $31.375 billion at the end of April, an increase of $5.18 billion.
Egypt’s foreign exchange reserves rose to $46.125 billion in May, compared to $41.057 billion at the end of April 2024.
The foreign reserve consists of a basket of major international currencies, including the US dollar, the single European currency euro, the British pound, the Japanese yen, and the Chinese yuan.
It is a percentage of which Egypt’s holdings are distributed on the basis of the exchange rates of those currencies and the extent of their stability in international markets, and it changes according to a plan drawn up by officials of the CBE.
The main function of the foreign exchange reserve with its components of gold and various international currencies, is to provide basic goods, pay installments and interests on foreign debts, and confront economic crises in exceptional circumstances, with resources from sectors generating hard currency being affected.
