Egypt’s foreign exchange reserves hit record $56.2 billion in July

Egypt’s foreign exchange reserves rose 3.6% in July to an all-time high of $56.29 billion, propelled by European Union financial support and a recovery in gold valuations, Central Bank of Egypt data showed on Wednesday.

The expansion from $55.07 billion in June marks the fastest monthly growth rate for the nation’s foreign reserves in nearly two years.

The surge in net international reserves primarily reflects Egypt’s receipt of a 1.5 billion euros funding tranche from the European Union, which bolstered overall reserve growth in recent weeks, Esraa Ahmed, a macroeconomics analyst at investment bank Ahly Pharos, told Al Manassa.

The European Commission last month approved the release of the second installment under the second tranche of Egypt’s assistance package. The disbursement is part of a larger 5 billion euros macro-financial support program.

Foreign reserves have avoided negative growth throughout 2026 despite market headwinds stemming from the US war on Iran, which triggered heavy capital outflows from Egypt’s domestic debt market. While reserves held firm, the fallout hit commercial banks’ net foreign assets more severely for several months before those positions rebounded to near pre-conflict levels in June.

Ahmed noted that a revaluation of central bank gold holdings based on higher late-July prices relative to late-June levels also contributed to the overall reserve increase.

Central bank figures indicate that the value of gold within Egypt’s foreign reserves climbed to $17.1 billion in July, up from $16.7 billion the previous month, though still below the $20.7 billion valuation recorded at the start of the year.