Egypt’s Net Foreign Assets Achieve Surplus of $14.3 Billion
In May, Egypt’s net foreign assets recorded a surplus of $14.3 billion, marking the first surplus in over two years, compared to April’s $3.7 billion deficit, according to the latest data from the Central Bank of Egypt (CBE). This significant turnaround follows a near-record high of $30 billion in net foreign assets earlier this year.
Since February 2022, Egypt has faced a deficit in net foreign assets due to regional tensions from the Russia-Ukraine conflict, foreign investor withdrawals, and both local and global political uncertainties.
Investments have bolstered Egypt’s banking sector. The central bank’s foreign assets surged to a $9.7 billion surplus in May from a $763 million deficit in April, with foreign assets increasing by $4.8 billion and foreign liabilities decreasing by $5.6 billion.
Commercial banks also experienced growth, with their net foreign assets rising to a $4.6 billion surplus in May from a $2.9 billion deficit in April. Their foreign assets grew by $6.9 billion, while foreign liabilities decreased by $625 million during this period.
May saw Egypt receive the second and final tranche of the Ras El Hikma agreement and a substantial influx of foreign funds, supporting the recovery of its net foreign assets. In January, Egypt’s net foreign liabilities peaked at $29 billion, but measures such as currency floatation and the Ras El Hikma investment contributed to a reduction in government liabilities.
International reserves also reached a record high, with net foreign assets increasing by $43 billion since January, primarily due to international support, including a $35-billion investment from the UAE. Egypt secured pledges of approximately $57 billion, in addition to the UAE deal, boosting its net international reserves to a record $46.1 billion in May.
