The International Monetary Fund (IMF) has projected a substantial increase in Egypt’s gross international reserves.
In its staff report for the third review under Egypt’s $8 billion loan programme, the IMF forecast a rise of 40.889 percent from $47.2 billion in FY2024/25 to $66.5 billion in FY2028/29.
Egypt is committed to allocating a significant portion of the proceeds from its landmark deal Ras El-Hekma to the gross international reserves to improve the country’s ability to handle future shocks through reinforcing its buffers, IMF Mission Chief of Egypt, Ivanna Vladkova Hollar said in previous remarks.
The $35 billion Ras El-Hekma deal, signed in February, provided a substantial boost to Egypt’s foreign direct investment.
Furthermore, the IMF’s staff report also stated that the stock of Egypt’s both gross and net International reserves surpasses its obligations and offers a safeguard for making its payments.
Egypt’s gross International reserves are projected to showcase a steady rise each year. From F
Y2024/25 to FY2028/29, reserves are expected to increase by an average of 8.4 percent annually.
In FY2025/26, reserves are expected to rise by 7.2 percent to $50.6 billion.
In FY2026/27, they are projected to increase by 7.7 percent to $54.5 billion.
By FY2027/28, reserves are expected to reach $59.6 billion, representing a growth of 9.4 percent.
Finally, in FY2028/29, reserves are projected to increase by 11.6 percent to reach $66.5 billion.
Source: State Information Service Egypt