Net foreign reserves increased by $696 million in April 2024, reaching a remarkable high of $41.1 billion, according to figures released by the Central Bank of Egypt. This represents the highest level achieved in over four years.

Last week, Fitch Ratings expected Egypt’s foreign currency reserves to reach $49.7 billion in the current fiscal year and $53.3 billion in the next fiscal year.

Fitch Ratings has also upgraded Egypt's long-term foreign-currency (LTFC) Issuer Default Rating (IDR) outlook from Stable to Positive, while maintaining the IDR at 'B-'. This shift highlights Egypt's bolstered economic resilience and decreased external vulnerabilities.

The rating agency cited several factors driving this positive outlook. Firstly, Egypt has significantly mitigated near-term external financing risks through initiatives such as the Ras El Hekma deal with the United Arab Emirates (UAE), the implementation of a flexible exchange rate, and stricter monetary policies. These measures have facilitated additional financing from international financial institutions (IFI) and stimulated renewed inflows of non-resident capital into the domestic debt market.