CBE: Egyptian banks maintain low exposure to market risk, below 3%

Egypt’s banking sector remains resilient to market risk. As of March 2024, the sector’s exposure to market risk was minimal, representing less than 3 per cent of total assets and contingent liabilities when weighted by risk weights.

This low exposure is primarily due to a significant decline in the value of banks’ fair value portfolio investments, which now account for just 0.15 per cent of total banking sector assets.

Furthermore, the sector’s net open foreign exchange positions have remained well within regulatory limits. In March 2024, there was a surplus of 5.7 per cent compared to a deficit of 2.8 per cent in the same period of 2023.

Attribution: CBE’s Financial Stability Report – March 2024

Subediting: Y.Yasser