Increase in Net Foreign Assets Deficit in Egypt

Data from the Central Bank of Egypt showed that the deficit in net foreign assets rose by 9.47 billion Egyptian pounds (306.97 million dollars) in December to an unprecedented level of 841 billion pounds, amid a decline in commercial banks' assets and an increase in liabilities. The data indicates a monthly decline in commercial banks’ assets equivalent to 12.26 billion Egyptian pounds, while their liabilities increased by 846 million pounds. The Central Bank has relied on the country's net foreign assets to help support the Egyptian currency over the past two years. In September 2021, the value of net assets stood at 248 billion pounds. Egypt devalued its currency by nearly half from March 2022 to March 2023 but has maintained it since then at around 30.85 pounds to the dollar. Today, the pound recorded about 68 pounds to the dollar in the parallel market. Net foreign assets represent the assets held by both the Central Bank and commercial banks owned by non-residents, minus what is owed to them in liabilities.