Egypt’s August net foreign reserves hit $46.5bln; interest rates unchanged

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Cairo: The net international reserves of Egypt amounted to $46.59 billion at the end of August 2024, according to the Central Bank of Egypt (CBE) data.

In the 5 September meeting, the Monetary Policy Committee (MPC) decided to maintain the rates of overnight deposit and lending at 27.25% and 28.25%, respectively. The MPC also kept the main operation rate and the discount rate unchanged at 27.75%.

The financial regulator noted that “Monetary policy tightening cycles in advanced and emerging market economies have contributed to a decline in inflation worldwide, with select central banks continuing to cut interest rates as inflation approaches its target levels.”

“The slight loosening in the policy stance is also motivated by downside risks to employment and economic growth. In the meantime, despite persistent geopolitical uncertainty, energy prices have slightly declined, but the outlook for commodity prices in general remains uncertain,” the statement added.

Last March, the MPC hiked the interest rates by 600 basis points (bps), elaborating that Egypt's economy has been weighed down by foreign currency shortages.