Egypts gold reserves rise to record high in April on coronavirus worries

Cairo –  Gold reserves in Egypt rose in April to a record high as fears over the repercussions of the coronavirus (COVID-19) outbreak fuelled safe-haven investment demand for gold.

Egypt’s gold reserves increased by $186 million or 5.2% to $3.704 billion in April from $3.518 billion a month earlier, according to data released by the Central Bank of Egypt (CBE).

Year-on-year, gold’s contribution to the country’s foreign reserves grew by 35% from $2.73 billion in April 2019.

Globally, the precious metal gained $97.6 or 6.1% per ounce in April on the back of stimulus packages released by central banks and amid worries over the COVID-19 pandemic.

On the other hand, the contribution of foreign currencies to Egypt’s international reserves slid to $33.142 billion in April, its lowest level since September 2017, compared to $36.399 billion in March.

Year-on-year, foreign currency reserves retreated by $7.8 billion or 19% from $40.95 billion in April 2019.

Egypt’s net international reserves dropped by $3.1 billion to $37.037 billion in April from $40.108 billion in March.