MEMPHIS REISEN

Ras El-Hekma project boosts Egypt’s net international reserves to $40.361bn – Dailynewsegypt

The Central Bank of Egypt (CBE) has announced a significant boost in Egypt’s net international reserves, which reached $40.361bn in March. This reflects a substantial increase of $5.05bn over the previous month’s $35.31bn.

According to a statement issued on Wednesday, the CBE reported that the reserves of foreign currencies surged to $31.313bn in March from $26.942bn in February, marking a rise of $4.371bn.

In early March, the Egyptian government acknowledged the acquisition of $5bn as part of the initial segment of an investment partnership agreement with the United Arab Emirates. This is aimed at the enhancement of the Ras El-Hekma initiative, alongside an additional $5bn procured by the Central Bank of Egypt on 28 February.

Concurrently, the central bank has reported a growth in the valuation of gold reserves within the net international reserves, amounting to $9.003bn in March 2023, an ascent from February’s $8.323bn, approximately a $680 million increment. The Special Drawing Rights are estimated at $48m, a slight increase from $47m.

The composition of Egypt’s foreign reserves includes a diverse array of major global currencies such as the US dollar, euro, British pound, Japanese yen, and Chinese yuan. The allocation of these reserves is influenced by the exchange rates and stability of these currencies in the global market, and adjustments are made following strategies devised by the Central Bank of Egypt’s officials.

The primary role of the central bank’s foreign exchange reserves, which encompass gold and a variety of international currencies, is to ensure the availability of vital goods, service external debt and interest payments, and provide economic stability during crises, particularly when the inflow from sectors generating foreign currency is disrupted.