Egypt’s net foreign assets positive for second month in June

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Egypt’s net foreign assets (NFAs) stayed positive for a second straight month in June having been deeply negative for more than two years, central bank data showed.

NFAs slid to EGP626.6bn in June from EGP676.4bn as of end-May. This works out to $13.05bn at end-June and $14.31bn at end-May, 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.

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 fell at commercial banks in June but rose at the central bank, while foreign liabilities rose at both commercial banks and the central bank.

Read: Egypt says it cut foreign debt by $14bn