Egypt's net foreign assets positive for third month

Egypt's net foreign assets (NFAs) rose by $220 million 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 644.8 billion Egyptian pounds at the end of July from 626.6 billion in June. This works out to $13.27 billion at end-July and $13.05 billion at end-June, according to Reuters calculations based on the official central bank currency rate at the time.

Egypt had 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 $28.96 billion in January this year.

Financial support package

But in February this year the government boosted its finances by selling the development rights to Ras El Hekma on the Mediterranean coast for $35 billion and in March by signing an $8 billion 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.

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