Egyptian Central Bank's Gold Reserve Sees Largest Monthly Increase Since 2022

The gold reserve held by the Central Bank of Egypt (CBE) recorded a strong surge in September 2025, reaching $15.843 billion, compared to $14.088 billion last August. This represents an increase of $1.755 billion, marking the largest monthly rise since 2022.

This increase comes amid the historical jump in global gold prices, where the ounce approached the $4,000 barrier for the first time. The surge is supported by widespread buying by central banks globally and the US dollar's decline by nearly 10% since the beginning of the year.

Components of International Reserves

The data showed a decline in the value of foreign currencies within the cash reserve to $33.649 billion at the end of September, compared to $35.122 billion in August, a decrease of $1.473 billion.

The balance of Special Drawing Rights (SDRs) reached approximately $44 million at the end of September 2025, compared to $43 million in August, thus maintaining its relative stability within the total reserve.

Consequently, the total Net International Reserves (NIR) reached $49.533 billion at the end of September, compared to $49.250 billion in August, an overall increase of $283 million.

Why the Egyptian Central Bank Prefers Gold Now?

The bolstering of the gold component in Egypt's cash reserve is part of a strategy to hedge against foreign currency volatility, especially given the global decline in the value of the US dollar, escalating geopolitical risks, and increasing expectations for US interest rate cuts.

Gold is considered a safe asset free from credit risk, which enhances the strength of the Egyptian reserve in facing crises, helps improve the credit rating, and strengthens the country's financial position before international institutions.

The world is currently witnessing an unprecedented buying wave of gold by central banks, led by China, India, and Turkey, in an attempt to diversify reserves away from the dollar. This reflects a structural shift in the global financial system toward safe physical assets.

With gold approaching $4,000 per ounce, the rise in its market value automatically boosts Egypt's dollar-denominated balance, even without the need to increase quantities.

The increase in the gold reserve enhances investor confidence in the Egyptian economy, supports the stability of the Egyptian Pound against external shocks, and gives the CBE greater flexibility in managing dollar liquidity, financing imports, and repaying external obligations.