Egypt’s net international reserves climbed to a record US$51.4 billion at the end of December 2025, the central bank said on Tuesday, underscoring improving foreign-currency inflows as the government presses ahead with economic reforms backed by the International Monetary Fund.
The figure marks a monthly increase of 2.4 percent, or about US$1.24 billion, from US$50.2 billion at the end of November, according to the Central Bank of Egypt (CBE). Reserves rose by nearly 9 percent over the course of 2025, reflecting what officials describe as tighter fiscal and monetary policies and stronger external financing.
The steady rise in reserves is a key indicator closely watched by investors and rating agencies, as Egypt seeks to stabilise its currency, meet import needs and service external debt following years of pressure triggered by the COVID-19 pandemic, the war in Ukraine and regional instability.
Egypt’s reserves have trended upward throughout 2025, supported by measures aimed at expanding private-sector participation, improving the investment climate and boosting trade efficiency as Cairo seeks to position itself as a regional hub for exports and supply chains.
The gains mark a sharp turnaround since early 2024, when foreign-currency shortages and a widening gap between official and parallel exchange rates weighed heavily on the economy. From April 2024 to December 2025, net international reserves surged by about 25.5 percent, or more than $10 billion, following corrective steps taken by the central bank.
On March 6, 2024, the CBE implemented a major policy reset, including a move toward greater exchange-rate flexibility and a sharp interest-rate hike. Rates were raised by six percentage points to rein in inflation, stabilise prices in the domestic market and attract hard-currency inflows, particularly from remittances.
The impact was swift. By the end of April 2024, reserves had jumped to US$41 billion their highest level in four years at the time from US$40.4 billion a month earlier, signalling renewed confidence in the policy direction.
Since then, authorities have leaned on a mix of monetary tightening, fiscal discipline and structural reforms, alongside large investment deals, to shore up the country’s external position.
Global rating agency Fitch Ratings has noted that Egypt has maintained greater exchange-rate flexibility since March 2024, a key IMF demand. Fitch said the banking sector remained “resilient and highly liquid”, despite disruptions to Suez Canal revenues caused by regional tensions and attacks on shipping in the Red Sea.
Support from multilateral lenders has also played a central role. Egypt is awaiting approval of the fifth and sixth reviews of its $8 billion Extended Fund Facility (EFF) programme with the IMF, alongside a $1.3 billion Resilience and Sustainability Facility (RSF). A staff-level agreement on the reviews was reached last month.
The IMF has cited progress on reforms including exchange-rate flexibility, tighter control over public spending and steps to reduce the state’s footprint in the economy. Proceeds from major investment agreements, including the multibillion-dollar Ras El-Hekma coastal development deal, have further bolstered foreign-currency liquidity.
According to the IMF, Egypt’s improving external buffers should help the economy better withstand shocks, support currency stability and ensure the availability of foreign exchange to meet import and debt obligations.
Analysts say the rising reserves provide the central bank with greater room to manage volatility in the pound without returning to heavy-handed interventions that previously drained foreign assets.
Looking ahead, Egypt is expected to enter 2026 on firmer macroeconomic footing, underpinned by robust foreign-currency inflows, improving external balances and continued progress on structural reforms designed to boost business confidence and ease financing pressures on companies.
Much will depend on the timely disbursement of around $2.5 billion under the IMF’s EFF programme this year, as well as the authorities’ ability to keep inflation on a downward path. Inflation is projected to ease to around 11 percent by June 2026, offering relief to households after years of soaring prices.
For now, the record reserve level offers Cairo a rare bright spot and a buffer as it navigates a challenging regional and global economic environment.
