Today, Thursday, the Central Bank of Egypt said that net foreign reserves rose to 40.468 billion dollars at the end of May 2021, compared to 40.343 billion dollars at the end of April 2021, an increase of about 125 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, and therefore the current average foreign exchange reserves cover about 8 months of merchandise imports into Egypt, which is higher than the global average of about 3 months of commodity imports to Egypt, in a way that secures Egypt's needs of basic and strategic commodities.
Foreign currencies in Egypt’s foreign reserves consist of a basket of major international currencies, which are the US dollar, the single European currency “euro”, the British pound, the Japanese yen and the Chinese yuan, a percentage of which Egypt’s holdings are distributed on the basis of the exchange rates of these currencies and the extent of their stability in international markets, and they change According to a plan drawn up by officials of the Central Bank of Egypt.
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, pay the installments and interests of foreign debts, and confront economic crises, in exceptional circumstances, with the resources from sectors generating hard currency, such as exports, tourism and investments affected, Because of the turmoil, other sources of hard currency, such as remittances from Egyptians abroad, which reached a record level, and the stability of Suez Canal revenues, contribute to supporting the reserves in some months.
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