Egypt’s net foreign assets hit LE 174.3B in April: CBE

CAIRO  - 2 June 2024: Egypt's central bank data indicates an improvement in the country's net foreign assets (NFAs) in April. The NFA deficit declined to EGP 174.385 billion at the end of April, compared to a negative balance of LE 199.652 billion in March.

 

This slight improvement suggests a narrowing gap between Egypt's foreign assets and its foreign liabilities. The Central Bank of Egypt (CBE) reported holding LE 1.883 trillion in foreign assets at the end of April, while commercial banks held LE 1.195 trillion. However, this is counterbalanced by LE 32.523 trillion in total foreign liabilities held by the CBE and commercial banks.

 

This aligns with recent government efforts to boost its foreign reserves, such as the significant increase in its loan agreement with the International Monetary Fund (IMF) from $3 billion to $8 billion in March 2024. The first tranche of $820 million was received in April 2024. 

 

Another key initiative is the Ras El Hekma deal, a $35 billion investment agreement with the United Arab Emirates (UAE) signed in March 2024. This is considered the largest foreign direct investment in Egypt's history; the deal focuses on developing Ras El Hekma into a new city. 

 

The Egyptian government had received from the Emirati side the value of the second installment of the Ras El Hekma deal, as the amount had already reached $14 billion, which contributed to pumping more dollar resources.