The Central Bank of Egypt (CBE) revealed a slight decline in its net international reserves in August to reach $33.141bn, compared to July’s $33.143bn.
Egypt’s reserves consist of foreign currencies that include the USD, euro, GBP, Japanese yen, gold, special drawing rights (SDR) units, and net loans from the International Monetary Fund (IMF).
The purpose of the reserve is to support the EGP, fulfil the country’s external obligations, and ensure its imports of basic commodities for several months. The size of the reserve for any country represents a source of strength or weakness according to its value and ability to meet the country’s foreign exchange obligations.
The resources of the Suez Canal Authority, tourism, export, foreign investment, and remittances of workers abroad are the most important resources feeding Egypt’s reserves.
Earlier, the CBE revealed the payment of about $24bn since the beginning of this year, including $10bn in external debts and $14bn in foreign funds.
Moreover, data from the CBE obtained by the Middle East News Agency showed that these amounts were directed to repay due international loans and bonds, which reflects Egypt’s commitment to pay all its dues on time.