Record Foreign Reserves Mask Components
Egypt's foreign exchange reserves rose to a new record high of $57.214 billion at the end of August 2026, an increase of $920.6 million or 1.64% compared to July, according to the Central Bank. The rise was mainly driven by an increase in the value of gold, which grew by $1.919 billion to reach $19.058 billion, now accounting for the highest percentage of total reserves at 33.3%. Conversely, foreign currency balances declined by $1.158 billion to $37.553 billion, indicating that the overall increase does not reflect a rise in liquidity in foreign currencies, which constituted about 65.6% of the reserves. Additionally, Special Drawing Rights (SDRs) increased to $606 million, following a rise of $160 million. The increase in reserves reflects Egypt's strong external position and supports the Central Bank’s ability to face shocks, support the national currency, and achieve greater economic stability—especially after completing a review with the International Monetary Fund and securing financing of nearly $1.8 billion.
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