Cairo — Egypt’s net international reserves rose to a record $53.13 billion at the end of May 2026, up $125 million from April, extending a steady upward trend despite heightened geopolitical tensions across the Middle East.
The latest figure marks the highest reserve level on record and strengthens Egypt’s external liquidity position. While the value of gold holdings declined by approximately $425 million due to lower global gold prices, the fall was more than offset by a $656 million increase in foreign currency assets, highlighting stronger foreign-exchange inflows.
The reserve growth coincided with a sharp rebound in foreign investment in Egyptian government debt. Foreign investors recorded net purchases of approximately $2.3 billion in treasury bills and bonds during the past week, while demand for local debt remained strong, enabling the Central Bank of Egypt to raise EGP 103.6 billion through treasury bill auctions.
The improvement follows economic reforms introduced in March 2024, including higher interest rates and greater exchange-rate flexibility under Egypt’s IMF-supported programme. Investors are now closely watching the outcome of the IMF review currently underway in Cairo, which could unlock a further $1.6 billion disbursement.
While recent gains have been driven largely by portfolio inflows, Egypt continues to focus on strengthening longer-term sources of foreign currency earnings, including exports, tourism, remittances, foreign direct investment and Suez Canal revenues. The reserve build-up is particularly notable given ongoing pressure on shipping activity in the Red Sea and wider regional instability.
For now, rising reserves, recovering foreign participation in local debt markets and easing sovereign-risk indicators suggest that confidence in Egypt’s financial outlook is gradually strengthening despite a challenging external environment.
