The net foreign assets of the Egyptian banking system jumped by approximately US$1.5 billion during February, reaching $10.17 billion, compared to $8.7 billion at the end of January – an increase of more than 17 percent, according to data published by the Central Bank of Egypt (CBE)’s website.
This change represents the net transactions of the banking system (including the CBE) with the outside world during the relevant period.
The increase in net foreign assets enhances the banking system’s ability to meet the demand for foreign currency, thus stabilizing the exchange market and the Egyptian pound’s exchange rate against other currencies.
The CBE said that the banking system’s total foreign assets rose to $72.04 billion by the end of February, an increase of $870 million from the previous month of January, which reached a total of $71.2 billion.
Liabilities decreased by $608 million to $61.87 billion, compared to $62.48 billion during the same period.
The Central Bank’s share of total foreign assets amounted to approximately $45.9 billion by the end of February, with $26.1 billion held by banks.
The liabilities were distributed as $33.8 billion held by the Central Bank and $28.03 billion held by banks operating in the local market.
This increase showcases continued improvement in Egypt’s external financial position, supported by foreign exchange inflows from multiple sources, including tourism, remittances from Egyptians abroad, and foreign direct investment, along with monetary policies aimed at enhancing financial stability.
Net foreign assets are an important indicator of the banking sector’s ability to meet its external obligations, as they reflect the difference between banks’ foreign assets and their outstanding liabilities.
Edited translation from Al-Masry Al-Youm
Central Bank of Egypt announces increase in net foreign assets Egypt Independent.
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