Cairo: Egypt’s net foreign assets (NFAs) remained positive for the second consecutive month in June, reversing a trend of deep negativity that lasted over two years, according to central bank data.
NFAs decreased to 626.6 billion Egyptian pounds in June from 676.4 billion pounds at the end of May. This equates to $13.05 billion at the end of June and $14.31 billion at the end of May, based on Reuters calculations using the official central bank currency rate.
Since at least September 2021, Egypt has leveraged its NFAs, which encompass foreign assets held by both the central bank and commercial banks, to stabilize its currency. NFAs turned negative in February 2022.
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In February of this year, Egypt bolstered its finances by selling development rights to Ras El Hekma on the Mediterranean coast for $35 billion. Additionally, in March, the government secured an $8 billion financial support package from the International Monetary Fund. A significant currency devaluation also stimulated a surge in portfolio investments and remittances from expatriate workers.
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While foreign assets at commercial banks declined in June, those at the central bank increased. Concurrently, foreign liabilities rose at both commercial banks and the central bank.
