Egypt’s net international reserves (NIR) increased by approximately $3.62bn during the first half (H1) of 2026, reaching a record $55.072bn in June, up from $51.452bn in December 2025, according to the Central Bank of Egypt (CBE).
The CBE said NIR rose steadily throughout the first six months of the year, standing at $52.594bn in January, $52.746bn in February, $52.831bn in March, $53.009bn in April, and $53.134bn in May, before recording a sharp increase to $55.072bn in June.
Egypt’s net international reserves comprise a basket of major international currencies, including the US dollar, euro, pound sterling, Japanese yen, and Chinese yuan. Their composition is managed in line with exchange rate movements and the relative stability of each currency in global markets, in accordance with the CBE’s reserve management policy.
The reserves play a central role in maintaining macroeconomic stability by financing imports of essential goods, servicing external debt obligations, and strengthening the country’s ability to withstand external shocks while meeting its international financial commitments.
NIR increased by approximately $1.936bn during June alone.
According to prominent banking expert Mohamed Abdel Aal, while the headline increase is significant, the composition of the reserves is even more noteworthy.
He explained that the latest rise was not driven by higher gold prices or accounting revaluations, but by a substantial increase in the foreign currency component of the reserves, reflecting stronger foreign exchange inflows into the Egyptian economy.
Abdel Aal said the foreign currency component of the reserves increased by around $3.934bn, while the value of gold holdings declined by approximately $1.992bn and Special Drawing Rights (SDRs) registered a slight decrease. This indicates that the overall increase stemmed almost entirely from higher foreign currency assets rather than valuation gains on gold or other reserve components.
He attributed the improvement to several factors, led by the continued surge in remittances from Egyptians working abroad, which have become one of the country’s largest sources of foreign currency.
The CBE recently reported that remittances from Egyptians overseas increased by 31.2% during the period from July 2025 to May 2026, reaching approximately $43.1bn, compared with around $32.8bn during the corresponding period of FY 2024/25.
On a monthly basis, remittances rose by 13.5% in May 2026 to approximately $3.9bn, up from around $3.4bn in May 2025.
Abdel Aal said the sustained increase in remittances has provided direct support to both foreign exchange reserves and US dollar liquidity.
He added that the gradual return of foreign investment into Egyptian debt instruments has also contributed to strengthening reserve buffers. Investor sentiment improved markedly during June as geopolitical tensions eased, the Egyptian pound stabilised, the foreign exchange market remained orderly, and real interest rates remained attractive.
These developments encouraged a partial return of foreign portfolio investment into Egyptian government debt securities. Although such inflows are not directly included in official reserves, they boost US dollar liquidity within the banking sector and ease pressure on the interbank foreign exchange market.
Abdel Aal also identified improving tourism revenues as another supportive factor, noting that tourism indicators have strengthened as regional conditions became more stable, generating higher foreign currency inflows.
He added that Suez Canal revenues have also shown relative improvement, although they remain below previous peak levels, benefiting from lower geopolitical risks compared with recent months.
In addition, the continued improvement in the banking sector’s net foreign assets has given the CBE greater flexibility to accumulate reserves without placing additional pressure on the foreign exchange market.
Abdel Aal noted that exchange rate revaluations can also influence reserve levels. Since Egypt’s reserves are held in a diversified basket of international currencies rather than US dollars alone, they are revalued in US dollar terms each month. As a result, appreciation of currencies such as the euro or pound sterling against the US dollar can increase the reported value of reserves even without additional foreign currency inflows.
However, he ruled out valuation effects as the primary explanation for the nearly $3.9bn increase in the foreign currency component during June, arguing that fluctuations in major currencies over the month were insufficient to account for such a large rise. While exchange rate movements may have made a modest contribution, he said the bulk of the increase was driven by genuine foreign currency inflows.
He also stressed that the decline in the value of gold holdings does not indicate that the CBE sold any of its gold reserves. Rather, it most likely reflected lower international gold prices in June compared with the record levels reached during heightened geopolitical tensions.
Under standard central bank accounting practices, gold reserves are marked to market each month. As a result, the value of Egypt’s gold holdings within the reserve portfolio fell by nearly $2bn, even though the physical quantity of gold is likely to have remained unchanged.
He concluded that the sharp increase in foreign exchange reserves during June demonstrates that the CBE is no longer relying on a single source of foreign currency. Instead, Egypt now benefits from multiple channels of foreign exchange inflows, enhancing the economy’s resilience against future external shocks. While exchange rate revaluations may have provided a limited boost, he said they do not adequately explain the scale of the increase recorded during the month.
