Net Foreign Assets up by 6% in September, surging to $10.31B: CBE

Cairo – November 3, 2024: Egypt’s net foreign asset (NFAs) surplus saw a significant increase in September, jumping 6 percent to a total of $10.31 billion, up from $9.7 billion in August, based on data from the Central Bank of Egypt (CBE).

Since shifting from a deficit in May, breaking a red streak that lasted since February 2022, September’s numbers mark the fifth consecutive month of surplus for the banking sector.

While the overall banking system showed improvement, commercial banks continued to grapple with negative net foreign assets.

In September, the deficit in commercial banks narrowed to approximately $132 million, improving from $536 million in August. Despite a 3.3 percent rise in total assets to $28.5 billion, this was offset by a 1.8 percent increase in liabilities, which rose to around $28.6 billion.

The CBE reported a slight increase in its net foreign asset surplus, which rose 1.7 percent to $10.4 billion, up from $10.3 billion in the previous month. Although the CBE's total assets decreased by $109 million to $45.2 billion, liabilities also fell by about $64 million to $34.7 billion, contributing to the overall surplus.

These developments follow significant economic shifts, including the Ras El Hekma agreement, the floatation of the Egyptian pound, and an influx of foreign portfolio investments, which have played a crucial role in stabilizing the banking sector and improving net foreign assets.