The Central Bank of Egypt said today, Wednesday, that net foreign reserves rose to $ 40.100 billion at the end of January 2021, compared to about $ 40.063 billion in December 2020, an increase of about $ 100 million.
Egypt imports an average of $ 5 billion per month of goods and products from abroad, with an annual total of more than $ 55 billion, and therefore the current average foreign exchange reserves cover about 8 months of merchandise imports to Egypt, which is higher than the global average of about 3 months. One of Egypt’s merchandise imports, which secures Egypt’s needs of basic and strategic commodities
Foreign currencies in Egypt’s foreign reserves consist of a basket of the main international currencies, namely the US dollar and the single European currency, “the euro”, the British pound, the Japanese yen and the Chinese yuan, which is a percentage of which Egypt’s holdings are distributed on the basis of the exchange rates of those currencies and their stability in international markets. According to a plan developed by officials of the Central Bank of Egypt.
The main function of the foreign exchange reserves at the Central Bank, with its components of gold and various international currencies, is to provide basic commodities, pay installments and interest on foreign debts, and face economic crises, in exceptional circumstances, with the resources from sectors that generate hard currency, such as exports, tourism and investments, are affected. Due to the turmoil, other sources of hard currency, such as remittances from Egyptians abroad, which have reached a record level, and the stability of the Suez Canal revenues, contribute to supporting reserves in some months.
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