Egypt’s Foreign Currency Reserves at “Reassuring” Levels, Says CBE Governor

Egypt’s foreign currency reserves remain at “very reassuring levels,” according to Hassan Abdalla, Governor of the Central Bank of Egypt (CBE). 

The statement came during a meeting with President Abdel Fattah El-Sisi, amid growing focus on the country's monetary stability.

Governor Abdalla’s remarks aim to instill confidence in Egypt’s financial position as the country navigates complex economic challenges, including inflation control and currency valuation pressures.

In the same meeting, President El-Sisi emphasized the importance of continuing efforts to curb inflation and ensure the stability of the Egyptian pound. He directed the government and the Central Bank to maintain strong coordination, with a focus on developing alternative credit assessment models and ensuring a flexible, unified exchange rate system.

Egypt has experienced persistent inflationary pressures in recent years, compounded by global economic instability and domestic fiscal adjustments. The Central Bank's role has become increasingly pivotal in balancing monetary policy with macroeconomic goals.

According to a recent CNBC survey involving 12 economists and financial analysts from both local and international investment firms, 58% of participants expect the Central Bank of Egypt to cut interest rates again in its upcoming meeting , the sixth monetary policy session of the year.

In August, the CBE implemented a 200-basis-point rate cut, bringing the overnight deposit rate to 22% and the lending rate to 23%, signaling the start of a potential easing cycle after previous tightening measures aimed at curbing inflation.

Analysts suggest that further rate cuts could support private sector growth and ease borrowing costs, though the Central Bank remains cautious of external pressures and capital flow volatility.