2024-04-01 20:57:19
Central Bank data showed that Egypt’s net foreign assets deficit narrowed by 217.1 billion Egyptian pounds ($7.04 billion) in February, after a $5 billion boost from the sale of land development rights on the Mediterranean.
Egyptian Prime Minister Mostafa Madbouly announced on February 29 that Egypt had received an initial payment amounting to five billion from the UAE in a deal worth $24 billion regarding a project on the Ras El Hekma Peninsula, west of Alexandria.
The deficit decreased in February to 679 billion pounds. This number does not yet reflect the impact of an expanded financial support program worth eight billion dollars concluded with the International Monetary Fund on March 6.
Central Bank data stated that banks’ foreign assets increased in February by 911.3 billion pounds on a monthly basis, while their liabilities decreased by 15.73 billion pounds. Foreign claims on the Central Bank decreased by about 81.6 billion pounds.
Net foreign assets represent the assets of the central bank and commercial banks owed by non-residents, minus their liabilities.
The Central Bank has relied on the country’s foreign assets to help support the Egyptian currency over the past two and a half years. In September 2021, net foreign assets reached 248 billion pounds.
Egypt reduced the value of its currency to slightly less than 50 pounds to the dollar within the framework of the International Monetary Fund agreement concluded on March 6, after it remained fixed at 30.85 pounds to the dollar for a year. The pound has since increased to 47.10 against the dollar.
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