Egypt’s net international reserves inch up to $37.12bln in April

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Egypt’s net international reserves increased to $37.123bn in April, compared to $37.082bn in March, the Central Bank of Egypt (CBE) announced on Sunday.

Egypt’s international reserves consist of foreign exchange (FX), gold, special drawing rights (SDRs), and net loans from the International Monetary Fund (IMF).

The CBE said that the value of gold included in the reserves decreased to $7.597bn in April, down from $7.807bn in March.

This comes as the volume of foreign exchange reserves rose to $29.334bn, compared to $29.07bn. SDRs, however, decreased to $198m, compared to March’s $205m.

The net international reserves decreased during March to $37.082bn, compared to $40.99bn in February.

The purpose of FX reserves is to support the currency, help the state fulfil its financial liabilities, and ensure that basic commodities are imported for several months. The volume of reserves reflects a country’s strength or weakness.

The revenues of the Suez Canal, tourism, exportation, foreign investments, and remittances are the most important resources feeding the reserves in Egypt.