Egypt's Net Foreign Assets Surge by $2.74 Billion in January
Egypt's net foreign assets (NFAs) increased by $2.74 billion in January, primarily driven by the sale of $2 billion worth of dollar-denominated bonds, according to central bank data.
NFAs reached $8.70 billion, up from $5.96 billion at the end of December, based on Reuters calculations using official exchange rates from the central bank. This growth follows three consecutive months of decline at the end of 2023.
Egypt finalized the sale of $2 billion in international bonds on January 29, marking its first international dollar-denominated bond issuance in four years.
Since September 2021, NFAs, which comprise foreign assets held by the central bank and commercial banks, have been used to support the local currency. After falling into negative territory in February 2022, NFAs only returned to positive territory in May 2023.
In December, Egypt had to settle dollar payments to repay Egyptian pound-denominated treasury bills held by foreign investors, nearly $1 billion in IMF loans, and natural gas imports, according to bankers, brokers, and analysts.
Foreign assets increased in January at both the central bank and commercial banks, accompanied by a rise in foreign liabilities in both cases.
