The Central Bank of Egypt revealed that net foreign reserves rose to 40.980 billion dollars at the end of January 2022, compared to 40.935 billion dollars, compared to the end of December 2021, an increase of about 45 million dollars.
Egypt imports an average of $5 billion per month of goods and products from abroad, with an annual total estimated at more than $55 billion. Therefore, the current average foreign exchange reserves cover about 8 months of commodity imports, which is higher than the global average of about 3 months of commodity imports, thus securing Egypt's needs of basic and strategic commodities.
The foreign currencies in Egypt's foreign reserves consist of a basket of the main international currencies, namely: the US dollar, the single European currency "Euro", the British pound, the Japanese yen and the Chinese yuan, it is a percentage that distributes Egypt's holdings of them on the basis of the exchange rates of those currencies and the extent of their stability in international markets. The main function of the foreign exchange reserve at the Central Bank, with its components of gold and various international currencies, is to provide basic commodities and pay the premiums and interests of foreign debts, and facing economic crises, in exceptional circumstances, with resources from foreign currency-generating sectors, such as exports, tourism and investments, affected by the turmoil.
Source (Youm7 Egyptian Website, Edited)
