Egypt’s net foreign assets (NFAs) experienced a $1.5 billion decline in April, central bank data revealed on Wednesday, reversing a significant jump seen in March.
This retreat follows March’s increase, which was spurred by the approval of the fourth review of the country’s IMF program.
NFAs decreased to the equivalent of $13.54 billion, down from $15.08 billion at the end of March, as calculated by Reuters based on official central bank exchange rates.
In March, NFAs surged by $4.9 billion after the International Monetary Fund (IMF) approved a $1.2 billion disbursement to Egypt.
This disbursement came after the completion of a review of the country’s $8 billion economic reform program.
The IMF also sanctioned a $1.3 billion arrangement under its resilience and sustainability facility.
These approvals led to an inflow of foreign investment into Egyptian pound treasury bills, according to bankers.
Egypt has utilized foreign assets, encompassing those held by both the central bank and commercial banks, to support its currency since September 2021.
Net foreign assets had turned negative in February 2022 and only returned to positive territory in May of last year.
In April, while foreign assets increased at both the central bank and commercial banks, foreign liabilities simultaneously decreased at both.
