PM: Foreign Reserve Growth Driven by Real Economy, Not Hot Money
Egyptian Prime Minister Mostafa Madbouly emphasized today that the recent rise in the country's foreign currency reserves is rooted in real economic growth, not speculative capital inflows or 'hot money.'
His statement came during the government's weekly press conference, where he also highlighted encouraging trends in inflation and economic performance.
'The positive economic indicators we're seeing, especially the decline in inflation, are a direct result of structural economic progress, not short-term capital movements,' said Madbouly.
According to the Prime Minister, Egypt's inflation rate dropped to 13.1% in July, down from June, marking a significant sign of stabilization in consumer prices. He also noted that average inflation during Q2 of 2025 stood at 15.3%, compared to the same quarter last year, indicating a continuing downward trend.
'This downward path in inflation,' Madbouly said, 'gives us confidence, and we've urged the private sector and commercial chambers to reduce profit margins in a way that passes relief onto the Egyptian consumer.'
Madbouly took the opportunity to assert that Egypt's foreign reserve increase is not the result of volatile financial flows or short-term debt. Instead, he credited the rise to improvements in sustainable sources of foreign currency, including the growth of exports, a recovery in the tourism sector, an increase in foreign direct investment, and a steady flow of remittances from Egyptians working abroad.
He acknowledged that Suez Canal revenues have been impacted, likely referring to ongoing global shipping disruptions, but assured that other sources of hard currency are seeing strong and sustained growth.
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