In a significant economic development, Egypt witnessed a remarkable spike in the value of gold within its international reserves during the initial four months of 2025. The value of gold soared by approximately $2.985 billion, with the figure climbing from $10.644 billion in December 2024 to reach $13.629 billion in April. This substantial increase played a pivotal role in shoring up the Central Bank‘s net international reserves, effectively counterbalancing a $2.112 billion decline in foreign currency reserves.
Data released by the Central Bank of Egypt (CBE) reveals that the net international reserves grew to $48.144 billion in April, up from $47.109 billion at the close of last year, registering a $1.035 billion rise. While foreign currency reserves dipped from $36.436 billion to $34.324 billion during the same period, Special Drawing Rights (SDRs) experienced a substantial leap. They jumped from $31 million in December to $194 million in April, an increase of $163 million.
Banking expert Mohamed Abdel Aal underscored the strategic significance of gold in Egypt’s reserve portfolio. He pointed out that gold serves a dual purpose as both a cultural icon and a financial safeguard. “Gold has long been a fundamental part of our economic assets. An uptick in its value directly enhances the overall reserve level, acting as a positive sign of reserve growth and stability,” he stated. Abdel Aal further explained that gold was a key factor in Egypt achieving a new high for foreign reserves in April, mirroring both domestic policies and global trends. “This isn’t just about heritage; it’s a well – thought – out strategy grounded in risk management and economic foresight. Gold offers protection against market volatility and fortifies reserve resilience during times of crisis,” he added.
The World Gold Council reported that Egypt augmented its gold holdings by around one tonne in the early part of 2025. Coupled with the concurrent surge in global gold prices, which reached nearly $3,500 per ounce in April, the value of the reserves was further magnified.
Abdel Aal also noted that the continued growth in gold – backed reserves bolsters Egypt’s financial stability, improves investor confidence, and could potentially result in a credit rating upgrade. “It strengthens the banking sector’s capacity to endure external shocks,” he remarked.
In related news, the CBE reported a notable improvement in Egypt’s net foreign assets (NFA) position in March. The banking sector’s NFA surged by $4.86 billion month – on – month, hitting $15 billion, in contrast to a net foreign liability (NFL) of $4.19 billion in March 2024. Excluding the Central Bank, the banking sector had a net foreign asset position of $2.53 billion in March 2025, reversing a $1.92 billion liability from February and showing an improvement from a $2.82 billion liability a year earlier.
Heba Mounir, a Macro Analyst at HC Securities and Investment, ascribed this improvement to a $4.51 billion month – on – month increase in total foreign currency assets across banks (excluding the CBE), while liabilities remained steady. “This indicates a real improvement in foreign currency liquidity,” she said. She also mentioned that Egypt attracted $2.7 billion in foreign direct investment (FDI) in the first quarter of 2025, a 15% year – on – year increase. Additionally, Egypt received a $1.2 billion tranche from the International Monetary Fund under its $8 billion Extended Fund Facility, further enhancing the banking sector’s liquidity and resilience.
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