Egypt’s Gold Reserves Surged in H1 This Year

SEATTLE (Scrap Monster): Egypt’s gold reserves surged higher significantly by 24% during the initial six-month period of the current year. The country is now ranked fifth among Arab countries and 31^st among world countries in terms of gold possession. The country’s gold reserves amounted to 125.8 tons as at end-June 2023.

The spurt in gold reserves is mainly attributed to increased purchases of the yellow metal by the Central Bank of Egypt. The bank had identified gold as an important hedging tool against currency fluctuations, especially in the wake of uncertainties triggered by Covid-19 pandemic and Russia-Ukraine tensions. The move to boost domestic gold reserves is part of efforts to support the local currency.

The country is home to several gold mines and the government has already announced plans to boost its domestic gold production. The Sukari Gold Mine is estimated to contain approximately 12 million ounces of gold, while the Iqat Gold Mine contains 1 million ounces of gold.

Egypt produces nearly 15.8 tons of gold per year, as per official records. The country imports the rest of the gold to meet its demand. The Egyptian gold purchases have recorded considerable increase from 22.9 tons in H1 2022 to 33.5 tons in H1 this year, the latest data released by the World Gold Council (WGC) says.