Egypt's Foreign Currency Reserves Reach Highest Level Since 2022

The Central Bank of Egypt has reported that reserves of foreign currency have reached the highest level in two years, owing in large part to the huge USD 35 billion Ras El Hekma deal with the United Arab Emirates. The figure for net international reserves rose to USD 40.4 billion at the end of March 2024, compared to USD 35.3 billion a month prior. Reserves have not been this high since February 2022.

The significant turnaround for Egypt’s economic crisis began in late February 2024 when the UAE signed the USD 35 billion deal with Egypt, the largest inbound investment in the country’s history. The deal signed over 40,600 feddans to the UAE for major development on Egypt’s north coast, including residential districts, international hotels, and recreational venues.

The first cash transfers from the deal, which were disbursed earlier this year, allowed the Ministry of Finance to approve the long-awaited floatation of the Egyptian Pound, welcoming a further USD 8 billion in loans and grants from the International Monetary Fund (IMF).

Since then, other international institutions, including the World Bank and the European Union, have pledged large programmes of foreign currency over the coming months and years, further bolstering reserves and the economy as a whole.