Egypt’s foreign currency reserves increased to US$45.42 billion in December compared to $45.35 billion in November, the Central Bank of Egypt (CBE) said on Monday.
Egypt’s foreign currency reserves increased significantly after Egypt adopted an economic reform program with the support of the International Monetary Fund (IMF) in 2016.
The CBE received two billion dollars in February, the last tranche of the $12 billion loan from the IMF.
The main function of the CBE’s foreign currency reserve – made up of gold and various international currencies – is to provide commodities, repay installments and external debt, and cope with economic crises during exceptional circumstances.
The reserves also help when the main sources of foreign currency for Egypt (tourism, exports and investments) become impacted in times of unrest.
Other sources of hard currency, such as remittances from Egyptians abroad (which have reached record levels) and Suez Canal revenues, contribute to the reserves.
Edited translation from Al-Masry Al-Youm