Egypt’s NFAs deficit climbs by 7.3 percent in March says CBE

According to data released by the Central Bank of Egypt (CBE), Egypt's net foreign assets (NFAs) deficit saw a significant increase in March 2023. The data shows that the country's NFAs deficit rose by LE 51.456 billion ($1.66 billion) to LE 755.688 billion ($24.42 billion) in March 2023, up from LE 704.232 billion ($22.76 billion) in February 2023, representing a 7.3 percent increase.

The CBE data also reveals that Egypt's NFAs deficit surged by LE 536.2 billion ($17.33 billion) month-on-month (m-o-m) in March 2023, marking a significant increase from LE 219.389 billion ($7.09 billion) recorded in the corresponding month a year earlier, representing a 244.3 percent increase.

Total foreign assets in Egypt declined to LE 1.439 trillion ($46.5 billion) in March 2023 from LE 1.476 trillion ($47.7 billion) in February 2023, down by 2.5 percent.

Meanwhile, foreign assets with the CBE increased by 0.9 percent to LE 1.021 trillion ($32.99 billion) in March 2023 from LE 1.012 trillion ($32.7 billion) in February 2023. However, foreign assets with banks in Egypt contracted by 10.1 percent to LE 417.468 billion ($13.49 billion) in March 2023 from LE 464.785 billion ($15.02 billion) posted a month earlier.

Furthermore, Egypt's total foreign liabilities rose by LE 13.717 billion ($443.26 million) m-o-m to LE 2.194 trillion ($70.9 billion) in March 2023, including LE 1.298 trillion ($41.94 billion) owed by the CBE and LE 896.705 billion ($28.98 million) owed by banks.

Egypt's net international reserves increased by 0.4 percent in February 2023 compared to January 2023. The reserves rose by $128 million (LE 3.952 billion) to reach $34.3 billion (LE 1.059 trillion), up from $34.2 billion (LE 1.056 trillion) registered by the end of January 2023.