The Central Bank of Egypt's (CBE) total gold reserves increased by more than 40 percent during the first nine months of this year, reaching a value of EGP757.40 billion by the end of September 2025, compared to EGP540.37 billion at the end of December 2024, an increase of EGP217.02 billion.
These figures are expected to increase further following the surge in gold prices last October. The bank's financial statements show that its gold reserves rose by approximately EGP73.83 billion during September alone.
Globally, gold prices have reached consecutive record highs since the beginning of this year, driven by several global economic factors, most notably the decline of the US dollar and the trend of interest rate cuts by central banks.
Gold has seen significant jumps in both local and international markets, with prices rising by more than 48 percent by last October, amid increasing investment and banking demand for the precious metal and prevailing uncertainty in global markets. Mahmoud Nagla, executive director of Money and Fixed Income Markets at Al Ahli Financial Investments Management Company, stated that the rise in global and local gold prices in recent months has boosted the value of the Central Bank of Egypt's gold reserves.
Nagla added that central banks have adopted a general trend for nearly two years of expanding their gold purchases as a safe haven to bolster their reserves amidst rapidly evolving geopolitical tensions and currency volatility. He also predicted that banks would continue to expand their gold purchases for at least the next three years, especially given the escalating global trade wars and the trend toward interest rate cuts.
A macroeconomics analyst and head of research at an Egyptian commercial bank said that the record-breaking growth rates in gold prices are encouraging the CBE to purchase gold, particularly in light of declining US interest rates. The economic analyst also predicted that gold prices would continue to rise over the next five years, ranging between USD4,700 and USD6,800, due to continued demand from central banks, accommodating monetary policies, and a weakening dollar.
Total assets decline
Despite significant growth in gold reserves, the CBE's total assets declined to EGP6.1 trillion by the end of September 2025, compared to EGP6.42 trillion at the end of December 2024, a decrease of approximately EGP320.1 billion.
CBE data attributed this decline to a decrease in actual cash available in its vaults to EGP16.9 billion, compared to EGP18.5 billion at the end of 2024. Its balances with banks also decreased to EGP907.2 billion last September, compared to EGP1.08 trillion at the end of the previous year.
The CBE’s contributions to the capital of its subsidiaries also increased by approximately EGP10 billion during the first nine months of this year, reaching EGP93.09 billion by the end of September 2025, compared to EGP83.08 billion at the end of December 2024.
Profits soar
The CBE’s net profits jumped during September, reaching EGP77.25 billion, compared to EGP40.34 billion at the end of August, an increase of EGP36.9 billion. This boosted shareholders' equity to EGP212.9 billion, compared to EGP177.3 billion.
The CBE returned to profitability in the fiscal year before last, for the first time in seven years, recording profits of approximately EGP22.834 billion, compared to losses of EGP86.28 billion in the preceding fiscal year, according to the bank's financial statements.
In November 2022, the CBE ceased subsidising interest rates on five initiatives: mortgage financing for low- and middle-income earners, industry, tourism, and converting vehicles to run on dual fuel (gasoline and natural gas). Subsidies for these initiatives were transferred to the Ministry of Finance, according to a decision by Prime Minister Mostafa Madbouly.