Egypt’s net international reserves increased by approximately $4.343bn during 2025, reaching $51.452bn by the end of December, compared to $47.109bn at the end of December 2024, according to data released by the Central Bank of Egypt (CBE).
Egypt’s foreign reserves comprise a diversified basket of major international currencies, including the US dollar, the euro, the British pound sterling, the Japanese yen and the Chinese yuan. These holdings are distributed based on exchange rate movements and currency stability in global markets, and are periodically adjusted in line with a strategy set by CBE officials.
The primary role of the Central Bank’s net international reserves—comprising gold and foreign currencies—is to secure essential imports, service external debt obligations, and provide a buffer against economic shocks under exceptional circumstances, particularly when foreign currency-generating sectors come under pressure.
CBE figures indicate that gold was the main driver behind the increase in reserves during 2025. The value of gold included in the reserves surged from $10.644bn in December 2024 to $18.166bn in December 2025, marking an increase of around $7.522bn.
This rise in gold holdings offset a decline in the value of foreign currencies within the reserves, which fell from $36.436bn in December 2024 to $33.232bn in December 2025, a decrease of $3.231bn. Meanwhile, Special Drawing Rights (SDRs) included in the reserves rose to $56m in 2025, up from $31m at the end of 2024.
Indicator of financial safety and monetary stability
Banking expert Shaimaa Wagih said developments in Egypt’s net net international reserves reflect deeper structural shifts in the economy and its capacity to adapt to global changes. She described reserves as one of the most important indicators of financial safety and monetary stability, as well as a vital tool for crisis management and strengthening confidence in the national economy—particularly amid heightened volatility in global financial, energy and supply chain markets.
Wagih noted that the increase in net foreign reserves by December 2025 should not be seen merely as a numerical improvement, but rather as evidence of relative success in managing foreign currency inflows. These inflows stemmed both from traditional sources—such as tourism revenues and remittances from Egyptians abroad—and from more disciplined monetary and fiscal policies aimed at easing pressure on the local currency and improving the efficiency of foreign resource utilisation.
She added that the rise also reflects the CBE’s ability to strengthen Egypt’s external position without disrupting monetary balances, supporting exchange rate stability and containing currency volatility, particularly during periods of heightened demand for foreign currency.
Greater flexibility for monetary policy
According to Wagih, the diversified composition of Egypt’s foreign reserves signals a strategic approach to reducing risks associated with reliance on a single currency, while providing greater flexibility in responding to sudden global exchange rate fluctuations.
She explained that such diversification is not only intended to ensure stability, but also to enhance returns on foreign assets while maintaining high levels of liquidity and safety. Reallocating reserve components in line with global market trends reflects professional sovereign asset management and strengthens the state’s ability to absorb external shocks without resorting to severe corrective measures.
Wagih stressed that net international reserves are not merely a stockpile of currencies, but constitute the economy’s first line of defence in times of crisis. They play a critical role in securing strategic commodities, meeting external obligations, and sustaining economic activity during periods of slowdown or external shocks.
In emerging economies, she noted, reserves carry added significance as a key determinant of investor confidence and the assessment of international institutions, serving as a direct indicator of a country’s capacity to meet its short- and medium-term obligations.
Sustainability remains the key challenge
Despite the importance of the increase in reserves, Wagih cautioned that the main challenge lies in sustaining this improvement and linking it to genuine growth in foreign currency-generating sectors, rather than relying on temporary inflows. Strong reserves, she said, should reflect a productive economy capable of expanding exports, attracting investment, and achieving a current account surplus over the medium term.
She concluded that the rise in net net international reserves sends a positive signal regarding the resilience of Egypt’s monetary policy and the economy’s ability to withstand global volatility. However, it also places greater responsibility on policymakers to strengthen sustainable sources of foreign currency and translate this monetary improvement into tangible economic growth felt by citizens and the productive sector alike.
“Foreign reserves are not an end in themselves,” Wagih said, “but a means to ensure stability and pave the way for more balanced and inclusive development.”
