The value of the gold balance included in the foreign exchange (FX) reserves of Egypt increased by about $69m in June to reach $2.821bn, up from $2.752bn in May.
The Central Bank of Egypt (CBE) said on Thursday that Egypt’s FX reserves rose at the end of June to $44.352bn against $44.275bn by the end of May, an increase of $77m.
This level covers Egypt’s imports of basic commodities for 8.4 months.
According to detailed data on reserve balances, the balance of foreign currencies has risen to approximately $41.074bn by the end of June, against $41.071bn in May.
The Special Drawing Rights (SDR) balance was up by the end of June to $453m against $448m in May, while loans to the International Monetary Fund (IMF) reached $7m in June against $8m in May.
FX reserves jumped by over $29m since June 2013, rising from $14.96bn.
Egypt’s reserves consist of foreign currencies, gold, SDR units, and net IMF loans.
The purpose of the reserve is to support the currency, meet the state’s external obligations, and ensure its imports of commodities for several months.
Most Egyptian reserves consist of US dollars, euros, sterling pounds, and Japanese yen.
The reserve size of any country of origin represents a strength or a weakness in terms of its value and ability to meet the state’s FX obligations.
The resources of the Suez Canal Authority, tourism, export, foreign investment, and remittances from abroad are the most important resources for Egypt’s reserves.
Before the January Revolution in 2011, Egypt’s reserves stood at $36bn. In June 2013, 56 months after the revolution, the reserves declined to $26.56bn.
The reserves lost more than $11.5bn in two years, reaching $14.96bn in June 2013.
However, the reserves began to recover slowly in June 2014, realising $16.687bn then to $20.082bn in June 2015, before falling again in June 2016 to $17.546bn then jumping back up to $31.305bn in June 2017.
The reserves achieved a new jump in June 2018 to $44.259bn then to $44.352bn in June 2019.