Egypt’s net foreign assets (NFAs) remained positive for the second month in a row in June, following more than two years of being deeply negative, as shown by central bank data.
NFAs decreased to 626.6 billion Egyptian pounds in June, down from 676.4 billion pounds at the end of May.
This equates to $13.05 billion in June and $14.31 billion in May, according to Reuters’ calculations based on the central bank’s official currency rate.
Since September 2021, Egypt has relied on its NFAs, which consist of foreign assets held by the central bank and commercial banks, to support its currency.
NFAs turned negative in February 2022.
In February, the government improved its finances by selling development rights for Ras El Hekma on the Mediterranean coast for $35 billion.
In March, it secured an $8 billion financial support package from the International Monetary Fund.
Additionally, a significant currency devaluation led to increased portfolio investments and remittances from overseas workers.
In June, foreign assets at commercial banks fell, but they rose at the central bank, while foreign liabilities increased at both commercial banks and the central bank.
