The Central Bank of Egypt (CBE) announced on Sunday that international foreign currency reserves increased at the end of March to reach US$40.337 billion.
This brings net international reserves up by about US$ 136 million from their figures at the end of February, when foreign currency reserve reached US$ 40.201 billion.
Egypt’s foreign currency reserves increased significantly after it adopted an economic reform program with the support of the International Monetary Fund (IMF) in 2016.
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.