Egypt’s net foreign assets positive for third straight month in July

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Egypt’s net foreign assets (NFAs) rose by $220m in July, remaining positive for a third straight month after having been deeply negative for more than two years, central bank data showed.

NFAs climbed to EGP644.8bn at the end of July from EGP626.6bn in June. This works out to $13.27bn at the end of July and $13.05bn at the end of June, according to Reuters calculations based on the official central bank currency rate at the time.

Egypt has been using its NFAs, which include foreign assets at both the central bank and commercial banks, to help prop up its currency since at least September 2021. NFAs turned negative in February 2022, falling to minus $28.96bn in January this year.

But in February this year, the government boosted its finances by selling the development rights to Ras El Hekma on the Mediterranean coast for $35bn and in March by signing an $8bn financial support package with the International Monetary Fund.

It also sharply devalued its currency, triggering a flood of portfolio investments and remittances from workers abroad.

Foreign assets increased in July at both commercial banks and the central bank, while foreign liabilities edged up at both.

Read: Egypt central bank expands lending to government, but inflation slows