The Central Bank of Egypt revealed that its international reserves increased to $40.361 billion by the end of March 2024, compared to $35.311 billion in February, marking an increase of $5.05 billion.
Egypt's international reserves consist of a basket of major international currencies, including the US dollar, the euro, the British pound, the Japanese yen, and the Chinese yuan. The allocation of Egypt's holdings of these currencies is based on their exchange rates and stability in the international markets, and it varies according to a plan set by officials at the Central Bank of Egypt.
The primary function of international reserves at the central bank, comprising gold and various international currencies, is to provide essential goods, repayments, and interest on external debts, and to address economic crises, especially under exceptional circumstances, when resources from hard currency-generating sectors are affected.
In February, Egypt and the UAE signed a real estate investment deal to develop the Ras El Hekma region in North Coast with $35 billion investments. Madbouly revealed that the total amount of the foreign direct investment will be $35 billion, which is expected to be received in full within two months, is divided into $24 billion in cash liquidity, and $11 billion from the UAE’s deposits with the Central Bank of Egypt (CBE). Egypt will also get 35% of the profits throughout the duration of the project’s implementation.
Madbouly stated that Egypt's external debt will decrease by $11 billion, transferred from an Emirati deposit in the central bank as an investment in the project.
Additionally, it was revealed that the Egyptian Public Business Sector Ministry would receive $520 million today from the hotels deal. These investments in the designated projects are anticipated to bolster foreign currency reserves and generate employment opportunities for the Egyptian workforce.
