Egypt’s net foreign assets deficit fell to LE 65B in March, CBE

Cairo – April 21, 2024: The Central Bank of Egypt revealed a substantial reduction in the net foreign assets (NFAs) deficit in March, marking its lowest level in over two years, influenced by a significant transaction involving the sale of property development rights and the implementation of currency reforms.

Egypt’s NFA deficit plummeted to LE 65.38 billion at the end of March, compared to LE 270.65 billion in February and LE 352.49 billion at the end of January.

Egypt secured $5 billion in February and an additional $5 billion in early March through the sale of development rights for Ras El Hikma. This transaction, part of a larger deal valued at $35 billion, contributed to the reduction of the NFA deficit.

As part of its loan agreement with the International Monetary Fund, Egypt depreciated the Egyptian pound which now stands at around LE 48.3 against the USD.

The devaluation aimed to encourage foreign investors to inject billions of dollars into local treasuries, while local expatriates increased remittances back to Egypt.

In March 2022, the CBE’s NFAs experienced a deficit of LE 93.39 billion, compared to a surplus of LE 134.35 billion the previous month, as the Russia/Ukraine war prompted foreign investors to withdraw funds from Egypt.

Egypt’s international reserves increased to $40.361 billion by the end of March 2024, compared to $35.311 billion in February, marking an increase of $5.05 billion, the central bank revealed earlier this month.