Egypt's net foreign exchange reserves increased by 0.3% month-on-month to $34.7 billion by the end of May, up from $34.6 billion in April, according to data from the Central Bank of Egypt.
The rise was driven by the government's privatization plan to attract investors and boost the economy, which is expected to generate around $12 billion in net foreign direct investments and asset sales proceeds. However, the country's massive external financing needs pose a challenge, and attracting non-debt external inflows remains a concern for investors.
Despite this, Egypt has maintained fiscal discipline and has consistently run primary surpluses over the past five years.
