Egypt’s Foreign Exchange Reserves Hit Record High Amid Surge in Remittances

Egypt’s foreign exchange reserves have reached their highest level on record, supported by a surge in remittances from Egyptians abroad and a notable rise in gold holdings, according to economic experts.

The Central Bank of Egypt (CBE) announced that net international reserves rose to $49.25 bn in August, up from $49.03 bn in July. The increase was largely driven by gains in gold reserves, which climbed to $14.09 bn, while foreign currency assets dipped slightly by about $94 million.

Economists attributed the growth mainly to a sharp rise in remittances from Egyptians working overseas. Data shows that during the first seven months of 2025, remittances reached $23.2 bn, marking a 49.7% year-on-year increase. These inflows have become one of the most vital sources of foreign currency for Egypt, helping to stabilize the balance of payments and strengthen the national reserve position.

Experts noted that the CBE’s prudent reserve management strategy—particularly its focus on diversifying assets and increasing gold holdings—has helped hedge against currency market volatility and global economic uncertainty.

Foreign exchange reserves play a critical role in ensuring a country’s financial stability, providing the ability to pay for essential imports, service foreign debt, and withstand external shocks.

For Egypt, the record level of reserves comes amid ongoing efforts to contain inflation and manage external debt pressures. Analysts say the higher reserves bolster investor confidence and offer a cushion against potential financial volatility.

However, they also warn that maintaining this level will require continued inflows and fiscal discipline. A slowdown in remittances or global economic turbulence could put renewed pressure on reserves.

Looking ahead, analysts expect reserves to continue rising if the current momentum persists. Some forecasts suggest Egypt’s foreign exchange reserves could surpass $51 bn in 2026, provided remittances remain strong and economic reforms stay on track.

The record reserves mark a positive signal for Egypt’s economy, reflecting improved external balances and growing confidence in the country’s financial management.