Egypt’s net foreign assets (NFAs) experienced a second consecutive monthly decline in August, dropping by $3.53 billion.
This follows a peak in May, reaching a two-and-a-half-year high.
Central bank data released Thursday revealed that NFAs decreased to 473.2 billion Egyptian pounds in August from 644.8 billion pounds at the end of July.
This translates to approximately $9.72 billion and $13.25 billion, respectively, based on Reuters calculations using the official exchange rate.
Egypt has been utilizing its NFAs, comprising foreign assets held by both the central bank and commercial banks, to bolster its currency since September 2021.
Notably, NFAs turned negative in February 2022.
Amidst regional challenges, Egypt has initiated discussions with the International Monetary Fund (IMF) to potentially adjust the terms of the $8 billion financial support package secured in March.
While foreign assets at commercial banks witnessed a significant decline in August, the central bank’s holdings saw a slight increase.
Foreign liabilities, meanwhile, remained relatively stable at both commercial banks and the central bank.
