The Central Bank of Egypt revealed that Egypt's foreign exchange reserves reached $40.2 billion by the end of February 2021, compared to $40.100 billion at the end of January 2021, which means an increase of about $100 million.
Egypt's reserves consist of foreign currencies, including the US dollar, the euro, the pound sterling, the Japanese yen, gold, special drawing rights units and net loans from the International Monetary Fund. The purpose of the reserve is to support the currency, fulfill the state’s external obligations and ensure 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 ability to fulfill the state’s foreign exchange obligations.
The resources of the Suez Canal Authority, tourism, export, foreign investment and remittances of workers abroad are the most important resources that feed Egypt's reserves.
The reserve's steadfastness came in the face of all the negative repercussions that passed in 2020, supported by the success of the Central Bank of Egypt to build it strongly before the outbreak of the pandemic, and to reach unprecedented record levels, which are the highest in the history of Egypt, as it reached about 45.510 billion dollars in February 2020, which contributed to increasing the Central's ability to support the state in light of the Corona crisis.
Source (Youm7 Website, Edited)
