Egypt’s net foreign currency reserves climbed to $52.74 billion by the end of February 2026, the Central Bank of Egypt announced, marking a notable increase from the previous month.
The rise reflects a relative improvement in the country’s ability to meet external obligations and stabilize the exchange rate, even amid ongoing regional and global economic challenges.
Officials note that the current reserve level is among the highest ever recorded in Egypt’s history, providing policymakers with a buffer to manage sharp fluctuations in global markets, particularly in the context of rising geopolitical tensions in the Middle East and their impact on capital flows.
The Egyptian pound has experienced pronounced swings against the US Dollar in recent days. After surpassing the 50-pound mark for the first time in several months on Tuesday, March 3, the dollar eased slightly on Wednesday, March 4, according to the latest updates from both public and private banks.
Market analysts attribute this volatility to a combination of factors, including foreign investors’ withdrawal from emerging markets like Egypt following the U.S. and Israeli military operation against Iran and subsequent Iranian retaliatory strikes targeting U.S. interests in the region.
The performance of the Egyptian pound in the near term will depend on several factors, including foreign portfolio investment trends, global interest rate developments, and the trajectory of regional geopolitical tensions.
Investors and market participants are closely monitoring the Central Bank of Egypt’s monetary policy decisions and foreign currency liquidity management to ensure continued stability amid a highly uncertain global environment.
Despite external pressures, the robust foreign reserves position provides Egypt with flexibility to navigate potential shocks in the currency and capital markets, reinforcing confidence in the country’s macroeconomic resilience.
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