Egypt’s net foreign assets drop to lowest in 6 months, driven by commercial banks’ deficit

Cairo – December 1, 2024: Dropping to its lowest level since May, Egypt’s net foreign assets fell by 11 percent in October, reaching $9.2 billion, down from $10.3 billion in September, according to data from the Central Bank of Egypt (CBE).

Egypt’s foreign assets only recently shifted to a surplus back in May, following two years of a deficit caused by several conditions including a large number of foreign investors pulling out from the market.

The decline was largely driven by commercial banks, with the deficit in commercial banks increasing to $1.4 billion, up from $132 million in September.

Assets held by commercial banks dropped by $362.8 million to $27.7 billion, while liabilities grew by $920.6 million to $29.2 billion by the end of the month.

The Central Bank of Egypt partially offset the overall decline after its net foreign assets rose by 1.9 percent in October, reaching $10.6 billion. The CBE’s assets grew by $800.6 million, reaching $45.4 billion, while its liabilities increased by $493.5 million to $34.8 billion by the end of October.

This decline in Egypt’s net foreign assets follows a record high deficit of $29 billion in January. Since then, the deficit has gradually decreased, aided by the Ras El Hekma agreement, the floatation of the Egyptian pound, and growing foreign portfolio inflows.