Egypt’s Economy Gains Momentum as Foreign Reserves Hit Record High

Cairo – February 22, 2026 – Egypt’s economic outlook brightened as President Abdel Fattah El-Sisi met with Central Bank Governor Hassan Abdalla on Saturday to review the performance of the banking sector and monetary policy. The meeting came as official data revealed a surge in foreign reserves to a historic high, signaling growing financial stability.

Strengthened Financial Indicators

Discussions during the meeting focused on the positive trajectory of Egypt’s financial indicators throughout 2025, highlighting the resilience of the Central Bank of Egypt (CBE) and the broader banking system in maintaining macroeconomic stability. According to a presidential statement, the CBE’s net international reserves reached $52.6 billion in January 2026, a significant increase from $33.1 billion in August 2022 [Presidential Spokesperson].

These reserves now cover approximately 6.9 months of merchandise imports, exceeding internationally recognized benchmarks. The net foreign assets of the banking sector also saw substantial growth, reaching $25.5 billion in December 2025 – the highest level since February 2020. This improvement was driven by stronger net foreign asset positions at commercial banks, totaling $12.2 billion [Egypt Today].

Key Drivers of Economic Improvement

Several factors contributed to this positive economic performance. Remittances from Egyptians abroad reached record levels, alongside increased tourism revenues and a rise in foreign investment in Egyptian government debt instruments. The CBE’s own net foreign assets also increased to $15.1 billion in January 2026 [Egypt Today].

Improved Credit Ratings

Egypt’s improved economic standing was further reflected in recent sovereign credit rating upgrades. Standard & Poor’s upgraded Egypt’s long-term credit rating to B from B- with a stable outlook – the first upgrade in seven years. Fitch Ratings also affirmed the country’s long-term foreign currency rating at B with a stable outlook [Egypt Today].

Focus on Financial Inclusion and Digital Transformation

The meeting also addressed ongoing efforts to promote financial inclusion and accelerate digital transformation within the banking sector. Discussions included the CBE’s corporate social responsibility initiatives, particularly in the health and education sectors.

President Al-Sisi’s Directives

President Al-Sisi emphasized the importance of sustaining efforts to control inflation through targeted market oversight, ensuring the availability of essential goods, and maintaining price stability. He also called for reinforcing financial stability and transparency, pursuing policies that support sustainable growth, and expanding incentives to attract investment and strengthen the role of the private sector as a driver of economic activity [Presidential Spokesperson].

Looking Ahead

Egypt’s recent economic gains demonstrate a positive trend towards greater financial stability and sustainable growth. Continued focus on monetary policy, financial inclusion, and attracting foreign investment will be crucial to maintaining this momentum and fostering long-term economic prosperity.