The Central Bank of Egypt (CBE) has revealed that the balance of special drawing rights (SDRs) included in the net international reserves increased by about $2.646bn in August 2021, to reach about $2.847bn, compared to only about $200m at the end of July 2021.
CBE revealed that Egypt’s net international reserves rose to $40.672bn in August 2021, compared to $40.609bn in July.
According to CBE, the volume of foreign currency reserves declined to $33.593bn in August, compared to $36.147bn in July, a decrease of $2.554bn.
The value of gold reserves in Egypt’s international reserves also declined by about $29m, to record $4.239bn in August, compared to $4.268bn in July.
Egypt’s international reserves consist of foreign currencies – US dollar, euro, pound sterling, Japanese yen – gold, SDRs and net loans of the International Monetary Fund (IMF).
The purpose of the reserve is to support the currency, fulfill the country’s external liabilities, and ensure its imports of basic commodities for several months. The size of the reserve of any country represents a source of strength or weakness according to value and ability to meet the country’s foreign exchange obligations.
The resources of the Suez Canal Authority, tourism, export, foreign investment, and remittances of workers abroad are the most important sources of Egypt’s reserves.