CBE: net foreign asset surplus slips 27% in August

Cairo – October, 3 2024: Egypt's net foreign asset (NFAs) surplus experienced a significant decline in August, dropping 27 percent to $9.7 billion, down from $13.3 billion in July, according to data from the Central Bank of Egypt (CBE).

Despite the decrease, this marks the fourth consecutive month of surplus for the country, a positive trend that began in May when net foreign assets transitioned from deficit to surplus for the first time since February 2022.

The decline in surplus was primarily driven by the performance of commercial banks, which reported a net foreign asset deficit of $536 million, reversing from a surplus of $2.8 billion in July.

While the banks' liabilities remained relatively stable, decreasing by $81 million, their assets plummeted by 11 percent to $27.6 billion.

The CBE itself demonstrated stronger performance, although with a slight decrease in its surplus.

The central bank's net foreign asset surplus fell 1.9 percent to $10.3 billion, down from $10.5 billion in the previous month. This shift was attributed to a $115 million drop in assets, accompanied by a $124 million rise in liabilities.

This fluctuation comes in the context of a broader recovery for Egypt's net foreign assets, which had reached an all-time deficit of $29.0 billion in January.