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

Egypt’s net foreign assets 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 626.6 billion Egyptian pounds in June from 676.4 billion pounds as of end-May. This works out to $13.05 billion at end-June and $14.31 billion 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 $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 fell at commercial banks in June but rose at the central bank, while foreign liabilities rose at both commercial banks and the central bank.