Where Is Most of the Money in Egypt Kept?
Understand the multifaceted landscape of how and where money is primarily held within Egypt's economy.
In Egypt, financial wealth and its circulation are multifaceted, encompassing formal institutions, national reserves, alternative asset classes, and a significant informal economy. Understanding where money is primarily held involves examining physical cash, institutional holdings, various asset forms, and economic activity channels. This view sheds light on how individuals, businesses, and the state manage financial resources within the nation’s financial ecosystem.
Money Within Formal Banking Channels
Commercial banks serve as a foundational pillar within Egypt’s financial system, managing the majority of market assets and capital movements. Both state-owned and private institutions facilitate how individuals and businesses hold funds. Customers deposit money into various account types, including savings, current, and time deposits, which offer different features like interest accrual and withdrawal flexibility.
The volume of money held within this banking system is substantial. Public deposits across the banking sector reached 11.99 trillion Egyptian pounds in the 2023/2024 fiscal year, a 26.9% increase from the prior period. The household sector alone accounted for 58.6% of these total deposits, with individual depositors representing 95.9% of household funds. Businesses also held a significant portion, with deposits rising to 1.99 trillion pounds.
Egypt’s banking sector includes 37 active banks operating through over 2,800 branches nationwide. Four large public sector commercial banks, including the National Bank of Egypt and Banque Misr, control nearly half of total bank assets and hold a significant market share in retail and corporate banking services. Digital financial services are growing, with 22 banks offering e-banking and mobile financial services, supporting 29 e-wallet applications. Financial inclusion has grown 147% in account ownership between 2016 and 2022, though less than 25% of the rural population is financially included, indicating continued reliance on non-bank methods.
Central Bank and State Reserves
The Central Bank of Egypt (CBE) acts as the primary custodian of the nation’s monetary reserves, external assets held for precautionary and transactional purposes. These net international reserves (NIR) are readily available and directly controlled by the CBE, serving as a buffer against external shocks and supporting economic stability. As of July 2025, Egypt’s total net international reserves reached a record $49.036 billion.
These reserves comprise a diversified portfolio of assets, including foreign currency holdings, gold, deposits, securities, and Special Drawing Rights (SDRs) from the International Monetary Fund. The foreign currency component alone stood at $35.076 billion in June 2025. Gold reserves represent a significant portion of the country’s stored wealth, increasing to 4.134 million ounces (approximately 128.6 tonnes) in July 2025, valued at $13.639 billion. This gold component constitutes about 28% of overall reserves.
The value of gold reserves can fluctuate due to new acquisitions and revaluations based on market prices, with the latter often accounting for a larger portion of value changes. Beyond the CBE’s direct holdings, consolidated net foreign assets (NFA) across the broader Egyptian banking sector, including commercial banks, also indicate the country’s financial health. This combined NFA position moved into a surplus of about $14.710 billion in May 2025. The CBE’s net foreign assets specifically rose to $10.491 billion in July 2025, reflecting its direct management.
Wealth Held in Alternative Assets
Beyond traditional bank deposits and national reserves, private and corporate wealth in Egypt is stored in alternative asset classes. Real estate stands as a significant store of value, highly favored by investors and the general public. The sector is projected to reach $1.46 trillion by 2024, with property prices anticipated to increase by 10-30% in 2025. Residential properties are a strong investment choice driven by rapid population growth and extensive new development projects.
Physical gold is another prominent alternative asset for wealth preservation in Egypt. Individuals commonly invest in gold bullion and various gold coin denominations. To formalize and expand access to gold investment, Egypt launched regulated gold investment funds, such as “EZ Gold” and “Sabayek,” in 2023 and 2024. These funds allow investors to purchase certificates, often starting around 100 Egyptian pounds per certificate, representing direct investment in physical gold bars. Investors can redeem holdings in either physical gold or cash, providing a regulated and secure avenue for this traditional form of wealth storage.
Foreign currency, particularly the US dollar, is also held by individuals and businesses outside the formal banking system. While Egyptian law allows citizens to retain any foreign currency they acquire and to conduct foreign currency transactions, these must be processed through accredited banks or licensed exchange entities. Dealing in foreign currency outside these regulated channels is a criminal offense, carrying severe penalties including imprisonment for up to ten years and fines of up to EGP 5 million. This legal framework aims to channel foreign currency holdings into the official system, though informal holdings persist.
The Informal Financial Landscape
A substantial portion of money and economic activity in Egypt operates outside formal banking and financial systems, forming the informal financial landscape. This sector is estimated to account for approximately 40% of the country’s Gross Domestic Product and provides employment for around 10 million people.
A prevalent characteristic of this informal economy is the widespread use of cash, with an estimated two-thirds of the population lacking bank accounts. It is estimated that 40% of all cash-based transactions occur within this informal sector. Small and micro enterprises frequently conduct their business solely through cash payments, often not relying on formal banking services.
Informal lending practices are common, with individuals and small businesses often relying on relatives, friends, and Rotating Savings and Credit Associations (ROSCAs) for financial needs. ROSCAs involve groups of individuals who regularly contribute a fixed amount to a common fund, with the total sum disbursed to one member in rotation. While professional money lenders exist, their role is minimal compared to these community-based arrangements. Many Egyptians engage with both formal and informal financial channels concurrently, demonstrating a dynamic interaction between the two systems.