Net Foreign Assets
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.
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
This positive trend followed a surplus of LE 676.4 billion in May 2024, a significant increase from the LE 174.385 billion deficit recorded in April of the same year.
The new surplus reflects the country’s rapid recovery from previous deficits, which almost reached a high of $30 billion earlier this year, exacerbated by external economic challenges
The narrowing of the deficit reflects the surge in foreign currency reserves after the fresh inflows for FX from the Ras El Hekma deal and the depreciation of the Egyptian pound
The deficit continues to decline due to increased inflows of remittances and foreign portfolio investments, including the second payment of the Ras El Hikma deal in early March.
This decline was primarily driven by a $5 billion payment received from the sale of development rights to Ras El Hekma.
The net foreign assets deficit rose to $27.2 billion in December 2023, a slight uptick from November’s $27 billion, according to the latest CBE data
Surplus of net foreign assets of the banking sector recorded an increase of $6.037 billion during February.
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