Egypt’s net foreign assets up 3.3% to report a surplus for the 3rd month in a row

Cairo – September 1, 2024: The Central Bank of Egypt reported the country’s third consecutive month with a surplus of net foreign assets (NFAs), reaching a surplus of $13.3 billion in July, up 3.3 percent from June’s $12.9 billion.

Egypt’s NFAs climbed into the positive back in May, which marked the first time the country’s NFAs were in the green since 2022.

The total foreign assets of Egypt's banking sector, encompassing both commercial banks and the central bank, amounted to LE 3.687 trillion in July, up from LE 3.634 trillion in June. Liabilities also increased to LE 3.042 trillion from LE 3.008 trillion the previous month.

The NFA, which measures the difference between the foreign assets held by the banking sector—including the Central Bank—and the liabilities owed to non-residents, reflects net transactions with the global market.

In July, commercial banks saw a 3.7 percent increase in their NFAs surplus, bringing the total to $2.8 billion, driven by an increase in gross assets of $745 million to $31 billion, while liabilities also rose by $644 million to $28.2 billion.

The CBE also experienced growth in its net foreign asset position, reaching a $10.5 billion surplus. The central bank’s foreign assets increased by $788 million to $45.2 billion, whereas liabilities rose by $437 million to $34.7 billion.

Egypt's NFA recorded a significant surplus of LE 676.4 billion in May, reversing a deficit of LE 174.38 billion from April. This was the first surplus since 2022, when the NFA stood at LE 9.674 billion.

Liquidity in the Egyptian banking sector reached LE 10.783 trillion in July, up from LE 8.877 trillion in December 2023. On an annual basis, Liquidity levels have steadily increased throughout the year, from LE 8.877 trillion in December 2023 to LE 10.618 trillion in June 2024.

The CBE reported that the money supply expanded to LE 2.689 trillion in July, compared to LE 2.370 trillion in 2023.

Currency in circulation outside the banking sector rose to LE 1.194 trillion, up from LE 1.068 trillion.

Demand deposits in local currency increased to LE 1.494 trillion, up from LE 1.301 trillion, while quasi-money, which includes time deposits and savings accounts, grew to LE 8.094 trillion from LE 6.507 trillion.