Egypt’s net foreign assets surged by $1.48 billion in February, marking the second consecutive monthly gain in 2025, official data revealed.
The Central Bank reported total net foreign assets climbing to $10.18 billion, up from $8.70 billion in January, reversing a trend of decline seen at the end of last year.
The jump appears to be fueled by renewed interest from foreign investors in Egyptian treasury bills, according to a senior banker familiar with the market.
This momentum follows a successful $2 billion international bond sale in late January, Egypt’s first dollar-denominated issue in four years.
Further boosts are expected in March, as the International Monetary Fund approved a fourth review of Egypt’s $8 billion support program.
The IMF decision unlocked $1.2 billion immediately, with an additional $1.3 billion available through its resilience and sustainability facility.
Egypt has leaned heavily on foreign assets—held both at the central bank and commercial banks—to support its currency since September 2021.
Net foreign assets had plunged into negative territory in February 2022 and only turned positive again in May 2024, signaling a fragile but recovering economy.
February’s gains came from increases in assets at both the central bank and commercial banks, despite a rise in liabilities at the central bank.
Commercial banks, however, saw a dip in their foreign liabilities, indicating improved financial positioning in the private sector.
This financial turnaround offers cautious optimism for Egypt as it seeks to stabilize its currency, manage debt, and regain investor trust.
Observers now look ahead to March’s figures, hoping they will solidify this fragile rebound in Egypt’s external financial position.
