Egypt’s net foreign reserves slightly fell to $33.141 billion at the end of August from $33.143 billion at the end of July, a central bank data showed on Sunday.
Foreign reserves have been falling since March following the outbreak of the Russian war in Ukraine, after being just above $40 billion since November 2020.
In March, the foreign reserves dropped by around $4 billion to $37.082 billion from $40.994 billion at the end of February as the war in Ukraine caused foreign investors to flee Egyptian treasuries, putting pressure on the currency, and in return prompting the central bank to devalue the pound by 14 percent on March 21.
Foreign currencies in Egypt’s foreign reserves comprise of U.S. dollar, euro, Australian dollar, Japanese yen, and Chinese yuan. The provision of foreign exchange, including gold and various international currencies, is designed to pay for imports, repay foreign debts, and cope with any economic crises in exceptional circumstances.
