The net foreign assets deficit in Egypt’s banking sector decreased to $4.2bn in March 2024, down from $21.9bn in February, marking a significant reduction of approximately $17.7bn. This change is attributed to the varying dollar selling prices: EGP 30.94 in February and EGP 47.26 at March’s end. The banking sector’s net foreign assets have been on a decline since October 2021, turning negative in February 2022—when foreign currency liabilities surpassed local currency assets—coinciding with the onset of the Russo-Ukrainian conflict. As per the CBE’s latest report, the banking sector’s total foreign assets (including central and commercial banks) reached EGP 2.959trn at March’s conclusion, a substantial increase from EGP 1.574trn in February. Conversely, the sector’s liabilities stood at EGP 3.159trn, up from EGP 2.253trn.

Source: Daily News Egypt May 02, 2024 18:46 UTC