Egypt’s foreign currency reserves continued to rise in May 2026, reaching $53.134 billion an overall increase of around $388 million since February, despite economic pressures and the negative repercussions of the US–Israeli war on Iran.
Central Bank data revealed that reserves increased by 0.23% in May compared with April, equivalent to around $125 million.
The rise continues the upward trajectory the reserves recorded in March, when foreign reserves reached $52.8 billion despite the outflow of hot money. During that period, foreign institutions posted net sales in bonds and treasury bills of around 239.5 billion Egyptian pounds ($4.6 billion), affected by the risks of regional war. These exits have been estimated at around $8 billion since the outbreak of the conflict.
Prime Securities macroeconomic analyst Mina Rafik attributed the resilience of foreign inflows during the months of war to “the restoration of a degree of confidence in the foreign exchange market” after the shift to a more flexible exchange rate.
Rafik told Al Manassa that before this shift, the gap between the official and black market exchange rates raised concerns among foreign investors and prompted larger waves of cash outflows than those seen during the Iran war, while the current stability of the market helped limit the effects of the regional crisis.
In April 2026, Moody’s estimated the amount of foreign investment exits from Egypt’s financial sector during the regional war at around $8 billion, but the country saw new investment inflows during the war period due to the stability of the dollar exchange rate.
Ibrahim Adel, a macroeconomic analyst at the brokerage platform Mubasher Trade, told Al Manassa that the decline in the value of gold reserves contributed to the slowdown in the growth of total reserves in March.
“The value of gold in the reserves fell by about 2.2% in May 2026, likely due to the revaluation of gold holdings based on new global prices, rather than a decrease in the quantity held or the sale of part of the gold reserves,” Adel said.
