Egypt’s financial position is showing clear signs of recovery, with new data from the Central Bank of Egypt (CBE) pointing to rising reserves and stronger foreign currency holdings.
In its latest report, the CBE said net foreign assets (NFA) reached US $10.49 billion in July 2025, up from US $10.1 billion in June. This marks a steady improvement in Egypt’s external position after years of pressure.
At the same time, net international reserves rose to US $49.04 billion, the highest level in years and an increase from US $48.7 billion in June. These reserves represent the country’s main buffer against external shocks and are closely watched by investors and global institutions.
The broader banking system has also benefited from this turnaround. The sector’s net foreign assets reached US $14.94 billion in June, slightly higher than the month before, showing that commercial banks are rebuilding their foreign currency positions.
Behind these gains are several important inflows. Remittances from Egyptians working abroad surged nearly 70 percent year-on-year, reaching US $32.8 billion between July 2024 and May 2025. Added to this were stronger tourism receipts, higher Suez Canal revenues, and foreign capital linked to the Ras El Hekma investment deal. The CBE also highlighted that banks’ local currency deposits grew sharply in July, signaling improved liquidity.
This recovery marks a sharp turnaround from early 2024, when Egypt faced a net foreign asset deficit of nearly US $29 billion. After currency liberalization in March 2024 and renewed agreements with the IMF and regional partners, confidence returned, allowing the country to rebuild its foreign buffers.
The rise in NFAs and reserves shows that Egypt has moved from a period of financial stress into one of cautious recovery. For policymakers, it means the country has more room to manage external pressures like debt payments and global price swings. For citizens and businesses, stronger reserves can help stabilize the exchange rate and reduce the risk of foreign currency shortages. While challenges remain, the latest figures suggest that Egypt’s external position is on a firmer footing heading into 2026.
