Egypt’s net foreign reserves jumped by over $5 billion last month, new data from the country’s central bank showed.

Total reserves at the end of May 2024 reached $46.126 billion, up by 12% from the previous month’s $41.057 billion.

Fitch Ratings predicted last month that the country’s foreign reserves in full year 2024 will increase to $49.7 billion. Reserves are projected to rise further to $53.3 billion by next year.

The ratings agency had revised the outlook on Egypt’s long-term foreign-currency (LTFC) issuer default rating to positive from stable.

One of the key drivers of the outlook revision is the significant decline of near-term external financing risks that resulted from the Ras El-Hekma deal with the UAE.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com