On Thursday, official data revealed a slight net increase Foreign assets in Egypt During last September, it amounted to about $591 million, after a sharp decline that exceeded $3.5 billion in August 2024.
Data issued by Central Bank Al-Masry, on Thursday, recorded net foreign assets in the banking sector at $10.31 billion at the end of September 2024, compared to $9.72 billion at the end of August and $13.26 billion at the end of July of the same year.
According to data from the Central Bank of Egypt, the net foreign assets of the banking sector in the country rose by about 6 percent last September, compared to a decline of about 26.6 percent in the previous month (the dollar recorded 48.67 pounds in August, and 48.35 pounds in September). According to the central bank exchange rate).
It is noteworthy that Egypt’s net foreign assets turned negative in February 2022. Egypt has been using its net foreign assets, which include foreign assets at both the Central Bank and commercial banks, to help support its currency since at least September 2021.
According to Central Bank data, the foreign assets of commercial banks are still negative at about $132 million, down from negative $535 million in August, after the banks recorded a surplus of about $2.8 billion in July.
Foreign assets increased slightly at commercial banks in September but decreased at the central bank, while foreign liabilities at commercial banks increased and decreased at the central bank.
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Egypt has resumed its talks with the International Monetary Fund to ease the conditions of the financial support package worth eight billion dollars, which was signed last March, due to the exceptional challenges facing the region.
The Fund’s top regional official said that the IMF’s program for Egypt is making progress, but any discussions about increasing the overall size of the program are still premature.
The IMF requires Egypt to move to a flexible exchange rate system, which it considers “the cornerstone of the economic reform program.” As a result, the Central Bank has devalued the pound by about 40% since last March 6 against the dollar and the rest of the major currencies, representing the fourth devaluation of the local currency in two years.
Egypt was also negatively affected by the Israeli occupation war on Gaza, as its revenues from the Suez Canal and tourism declined, which increased pressure on the Egyptian pound.
Although the Suez Canal has not been subject to direct interruptions, geopolitical concerns in the region have prompted some companies to search for alternative shipping routes, which has negatively affected revenues since the beginning of this year.
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The Suez Canal is considered a major source of foreign currency for Egypt, and any decline in its revenues negatively affects the cash reserve and the stability of the local currency.
Egypt’s tourism sector has also been affected by regional tensions, with tourists avoiding visiting the region for fear of a deteriorating security situation. With Egypt relying on tourism as a main source of national income, the decline in the number of tourists has harmed the Egyptian economy, reducing the inflow of foreign currency, and further exacerbating the country’s current account crisis, which has increased pressure on the Egyptian currency.
