Egypt’s Central Bank Raises Gold Holdings to 4 Million Ounces

The Central Bank of Egypt added 1,768 ounces of gold to its foreign reserve holdings in July, bringing the total to 4.134 million ounces (equivalent to about 128.6 tonnes), compared with 4.132 million ounces in June. The tonnage conversion is based on the latest independent estimates, which show Egypt’s holdings at 128.54 tonnes at the end of Q2 2025.

In value terms, the gold component of reserves rose to $13.639 billion in July, up from $13.586 billion in June (+$53 million), according to data published by the Central Bank. Meanwhile, total net international reserves reached a record $49.036 billion in July. This means gold represents roughly 28% of the overall reserves.

What Drove the Increase in Value?

With gold ending July near $3,299 per ounce, the purchase of 1,768 ounces theoretically accounts for about $6 million of the monthly increase — only around 11% of the $53 million rise. Nearly 89% of the increase came from revaluing existing holdings as prices moved higher. In other words, the price effect far outweighed the net purchase in July.

Accumulation Pace Year-to-Date

Data up to the end of July shows a cumulative addition of about 55,000 ounces (around 1.7 tonnes) so far this year. While relatively small compared to existing reserves, this aligns with a global pattern of selective central bank gold buying in 2025. Worldwide purchases slowed in Q2 to around 166 tonnes (the lowest quarterly level since Q2 2022, though still well above the 2010–2021 average). A World Gold Council survey also revealed that 95% of central banks expect to increase gold reserves over the next 12 months.

Why Does It Matter for the Local Market?

Reserve diversification and currency risk reduction: Increasing the share of a non-dollar asset reduces the sensitivity of reserves to FX shocks and sovereign debt risks. The move comes as gold continues its strong performance in 2025, supported by growing trade and geopolitical tensions and shifting central bank policies.

Improved external liquidity position: With total reserves at $49.036 billion, Egypt enjoys a wider financing buffer for essential imports and debt servicing, while gold provides an internationally recognized quality asset within the reserves mix.

Greater sensitivity to price volatility: With gold accounting for about 28% of reserves, the valuation of official assets is more directly impacted by immediate price moves. Gold ended July up 0.3% month-on-month, following a record-high Q2 average. Any subsequent price drop could weigh on reserve valuations even if holdings remain unchanged.

Strategic Reading

Cautious but consistent accumulation: The modest July addition, alongside a year-to-date buildup of ~1.7 tonnes, suggests the Central Bank is pursuing a gradual strengthening strategy rather than making large market-timing bets — in line with the global slowdown in Q2 purchases, according to the World Gold Council.

Supportive environment for gold: Despite cyclical easing in central bank buying, international surveys lean toward higher gold allocations. Meanwhile, price forecasts remain firm, underpinned by global trade realignment and U.S. monetary policy expectations in the second half of the year.

In summary: Egypt’s recent moves mirror the global trend of selective central bank accumulation amid record prices and rising hedging motives, even as the pace of buying slowed in Q2.