The balance of foreign currencies included in the foreign exchange reserves reached about $33.856bn by the end of September 2020, according to the Central Bank of Egypt (CBE). This reflected an increase of about $221m on the $33.635bn reported at the end of August 2020.
On Wednesday, the CBE said that its foreign exchange reserves rose to $38.425bn in September 2020, compared to $38.366bn during the month of August, an increase of $59m.
The value of the gold balance included in the detailed data on reserve balances decreased by $159m to about $4.361bn during September 2020, compared to about $4.520bn in August.
The balance of special drawing rights (SDRs) decreased to $214m in September, compared to $215m in the previous month.
Egypt’s reserves consist of foreign currencies, which include the US dollar, the Euro, the Pound Sterling, the Japanese Yen, gold, SDR units and net International Monetary Fund (IMF) loans. The goal of the reserve is to support the local currency and fulfil the country’s external obligations, whilst also ensuring its imports of basic commodities for several months.
The size of the reserve for any country represents a source of strength or weakness, according to its value and its ability to meet the state’s foreign exchange obligations.
The resources of the Suez Canal Authority (SCA), tourism, exports, foreign investments, and remittances of workers abroad are the most important income-generating resources that feed Egypt’s reserves.