Egypt’s net international reserves rose to $47.265 billion in January, according to data from the central bank. The reserves were recorded at $47.109 billion in December 2024, up from $46.952 billion in November, as reported earlier this month.
At the close of August 2024, Egypt’s net international reserves reached $46.597 billion, rising from $46.49 billion at the end of July, according to the Central Bank of Egypt (CBE). This upward trend began in June, when the reserves grew from $46.126 billion in May to $46.3 billion, following increases from $41 billion in April and $40.4 billion in March.
Egypt’s net foreign assets declined by $592.1 million in December, marking the third consecutive monthly decrease, according to data from the Central Bank of Egypt. This drop comes amid increasing pressure from various foreign currency liabilities.
According to calculations by Reuters based on the central bank’s official exchange rates, net foreign assets fell to $5.29 billion from $5.96 billion at the end of November, following a drop of $3.25 billion in November.
Since at least September 2021 Egypt uses foreign assets controlled by the central bank and commercial banks as means to stabilize the pound. Negative territory consumption of these resources started during February 2022 before they became positive again in May 2024.
In December, Egypt’s currency faced significant pressure due to substantial foreign liabilities. Bankers, intermediaries, and analysts indicated that these obligations included servicing treasury bills in Egyptian pounds for foreign investors, repaying around $1 billion in IMF loans, and making payments for natural gas imports.
Egypt’s non-oil private sector records best performance in 4 years
Egypt’s non-oil private sector experienced growth in January, achieving its strongest performance in over four years and marking its first expansion since August, according to a recent business survey. S&P Global’s headline Purchasing Managers’ Index (PMI) rose to 50.7 in January, up from 48.1 in December, indicating a renewed improvement in the sector’s health at the start of 2025, as reported by Reuters. A PMI reading above 50.0 signifies growth, while a figure below that indicates contraction.
January’s reading was the highest since November 2020, fueled by improved domestic market conditions and easing cost pressures, which contributed to increased sales. However, uncertainty regarding the sustainability of this upturn tempered business expectations and hiring.
The Output sub-index reached 51.1 points during January following its mark of 47.1 points in December and the New Orders sub-index increased to 51.3 from 46.4. The optimistic start to the year did not eliminate the corporate reluctance to predict future business activity since expectation levels dropped to near-record low points. Labor markets stopped declining after two months of layoffs even though companies did not expand their workforce. Future output expectations registered 52.8 points according to the sub-index during January as it declined from its December value of 53.8.
The pace of rising costs declined to its most moderate level since last eight months. The slightest price hike for products occurred at this point since the rise lasted only four and a half years. Buyer expenses in the construction field decreased as other market segments displayed reduced purchasing cost escalation compared to December.
