The Central Bank of Egypt announced on Monday, that net foreign reserves have increased to $47.109 billion in December, compared to $46.952 billion at the end of November.
Egypt’s foreign reserves consist of a basket of major international currencies, including the US dollar, the euro, the British pound, the Japanese yen, and the Chinese yuan. The distribution of Egypt’s holdings of these currencies is based on their exchange rates and stability in international markets, and changes according to a plan set by officials at the Central Bank of Egypt.
The primary function of foreign exchange reserves held by the Central Bank, consisting of gold and various international currencies, is to provide essential goods, service external debt principal and interest payments, and address economic crises in exceptional circumstances, while being influenced by the resources generated from hard currency-earning sectors.
