The British newspaper Independent reported today that several African countries maintain significant foreign currency reserves to mitigate economic shocks, support imports, and maintain their financial credibility on the international stage.
The reserves of several countries at the end of 2024 reflect a highly positive outlook despite the tough global environment. The rise in the prices of basic commodities, especially crude oil, has had a positive impact on export revenues and the balance of payments in many African countries, according to the report.
The Independent stated that continuous financial flows have bolstered the continent’s reserve position, driven by new projects, support from development financial institutions, improved remittances from expatriates, and the influx of tourists and their remittances.
Libya Leads the Way
Two Arab countries maintained their positions at the top of the list, namely Libya and Algeria, while Egypt, Tunisia, and Morocco were also present among the top 10.
The newspaper went on to say that Libya ranked highest in Africa with large foreign currency reserves totaling $80.7 billion. Its gold reserves remained unchanged at 146.65 tons during the first quarter of 2024, compared to 146.65 tons in the fourth quarter of 2023. Libya’s average gold reserves from 2000 to 2024 were 131.36 tons.
The newspaper emphasized that despite political instability and the prevalence of internal conflicts, Libya has managed to maintain relatively high foreign currency reserves due to its extensive oil production and exports.
According to the Independent, the Central Bank of Libya has utilized these reserves to maintain balance, particularly during periods of volatility in global oil prices in 2024.
