Egypt’s net foreign assets boast surplus for first time in 2 years

Egypt’s net foreign assets (NFAs) turned a surplus for the first time in more than two years in May, central bank data showed on Thursday.

According to the data released by the Central Bank of Egypt (CBE), the net foreign asset surplus – the first since March 2022 – reached a value equivalent to a whopping 458.630 billion Egyptian pounds by the end of May. This is a dramatic shift compared to a 36.070-billion-pound deficit recorded just a month earlier. The previous deficit had stretched back to March 2022, with a peak of 93.3 billion pounds.

Net foreign assets are a key indicator of a country’s financial health. A positive surplus signifies that the central bank has more foreign currency reserves than its foreign currency debts. This newfound strength allows the CBE to better manage the Egyptian pound and bolster the nation’s financial resilience.

Reserve Money on the Rise

The central bank’s data also revealed an increase in the country’s reserve money (MO) to 1.827 trillion pounds by the end of May, up from 1.614 trillion pounds earlier month. This further strengthens the picture of a recovering Egyptian economy.

Attribution: Reserve Money (M0)-May 2024 preliminary