The Central Bank of Egypt (CBE) has announced a remarkable increase of $2.2 billion in the value of gold held within the nation’s foreign exchange reserves in 2024. This surge brings the total value to $10.644 billion by December 2024, a rise from $8.440 billion recorded in December 2023.
Rise in gold reserves throughout 2024
Following a decline in the initial months of 2024, the value of gold reserves started to rebound in March, beginning at $9.003 billion. The upward trend persisted throughout the year, with values recorded at $9.384 billion in April, $9.557 billion in May, $9.485 billion in June, and $9.883 billion in July. The value continued to ascend, reaching $10.262 billion in August, $10.723 billion in September, and peaking at $11.154 billion in October. By November, there was a slight decrease to $10.777 billion, culminating in a final value of $10.644 billion in December.
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Overall increase in foreign exchange reserves
In addition to the gains in gold reserves, the Central Bank of Egypt disclosed that Egypt’s total foreign exchange reserves rose by $11.889 billion in 2024, reaching $47.109 billion in December 2024, up from $35.220 billion in December 2023.
Egypt’s foreign reserves comprise a diverse array of international currencies, including the U.S. dollar, euro, British pound, Japanese yen, and Chinese yuan. These reserves are strategically distributed based on currency exchange rates and the stability of international markets, following a plan established by CBE officials.
Importance of foreign exchange reserves
The primary aim of Egypt’s foreign exchange reserves, which include both gold and foreign currencies, is to guarantee the availability of essential commodities, facilitate external debt repayments, and provide a safeguard against economic crises. During periods of financial instability, these reserves act as a vital resource to drive the country’s economy.
