By Radarr Africa Business Desk
CAIRO, November 14 (Radarr Africa) – Foreign currency balances held in Egypt’s central bank reserves rose to $40.06 billion at the end of October, the first time they have exceeded $40 billion since the Covid-19 pandemic, according to Central Bank of Egypt data reported in the Arabic-language Egyptian press. The figures were released as the state statistics agency said annual inflation eased in October.
The foreign currency component stood at $39.29 billion in September, a monthly rise of $768 million, and is now at its highest since February 2020, when it was about $41.7 billion, Egyptian press reported on November 6, citing the central bank’s figures. It was about $26.5 billion in January 2024 and $35.8 billion in January 2025, the report said.
Net international reserves, the central bank’s wider measure, rose to about $57.5 billion at the end of October from about $57.35 billion in September, a new record, according to Arabic-language Egyptian financial reports on November 5, which cited central bank figures. One report put the exact October figure at $57.4998 billion, an increase of about $151.8 million on the month.
Egyptian press noted that foreign investors were net sellers of about $3.5 billion of Treasury bills on the secondary market in October, based on the Egyptian Exchange’s monthly report, and said the rise in reserves did not necessarily mean the full value of those outflows had been absorbed.
Separately, the Central Agency for Public Mobilisation and Statistics, CAPMAS, said on November 5 that annual inflation for the whole republic slowed to 12 per cent in October from 12.8 per cent in September, according to Egyptian press reports of the agency’s statement. Prices rose 0.6 per cent from the previous month, and the general consumer price index stood at 296.1 points.
Monthly increases were led by meat and poultry, up 3.2 per cent, dairy, cheese and eggs, up 2.5 per cent, home furnishings, up 1.5 per cent, and grains and bread, up 1.1 per cent. Fruit fell 2.9 per cent and vegetables 2.6 per cent. By spending group, food and beverages rose 0.8 per cent on the month, and transport and furniture and household equipment each rose 0.9 per cent.
Compared with October 2025, housing, water, electricity, gas and fuel prices were up 24.1 per cent, the largest annual rise among the main groups. Within that group, actual rents rose 27.7 per cent and electricity, gas and other fuels 22.8 per cent. Transport costs rose 22.3 per cent and education 20 per cent. Food and beverages rose 7.5 per cent over the year, with fruit up 16.4 per cent, vegetables up 12.9 per cent and meat and poultry up 9.3 per cent, while dairy, cheese and eggs were down 0.8 per cent. Health prices rose 5.4 per cent, with hospital services up 18.7 per cent.
The data arrive a week after the central bank’s Monetary Policy Committee raised its key rates by 100 basis points on October 29, its first increase since March 2024. The overnight deposit rate rose to 20 per cent from 19 per cent, the overnight lending rate to 21 per cent from 20 per cent, and the main operation and discount rates to 20.5 per cent from 19.5 per cent, according to reports of the decision.
The committee had left rates unchanged at five previous meetings this year. It cited an unfavourable external environment and higher uncertainty, with global commodity prices, particularly energy and food, rising amid regional tensions and supply-chain disruptions, Egyptian media reported. The central bank now expects inflation to converge on its 7 per cent target, plus or minus 2 percentage points, on average in the fourth quarter of 2027, later than the second half of 2027 it had indicated in September, Egyptian media reported.
Analyst Mohamed Abdel Aal called the move a surprise and a precautionary step aimed at anchoring expectations, in comments carried by Egyptian media. Egyptian media reported that the Egyptian pound crossed 55 to the dollar on October 22 and broke 56 by October 27, and that foreign investors had net sold about 116.2 billion Egyptian pounds, or roughly $2.07 billion, of government securities in October up to the decision date
