The Central Bank of Egypt (CBE) announced on Wednesday that the nation has successfully managed to pay $23.8 billion towards its external debt service from July 2023 to March 2024. This substantial payment underscores Egypt’s commitment to maintaining financial stability and meeting its international obligations.
According to the CBE’s report, the country settled $8.168 billion in the first quarter of the fiscal year 2023/2024, $7.384 billion in the second quarter, and $8.255 billion in the third quarter. This structured approach to debt repayment has been crucial in managing the country’s fiscal health.
The CBE also highlighted a significant reduction in Egypt’s total external debt, which decreased to $160.6 billion in March 2024, down from $164.5 billion in September 2023. This reduction is a positive indicator of the country’s ongoing efforts to manage and reduce its debt burden.
In an encouraging development, the CBE reported a significant increase in foreign investments in local treasury bills. These investments soared to the equivalent of EGP 1.765 trillion in June 2024, a dramatic rise from EGP 388.421 billion in June 2023. This surge in investment followed the Central Bank’s decision in March to liberalize the exchange rate and raise interest rates to record levels, making local assets more attractive to foreign investors.
Additionally, the CBE reported an increase of EGP 1.511 billion in net foreign assets within the banking system from July 2023 to May 2024. This growth was driven by a rise in the Central Bank’s net foreign assets by EGP 763.5 billion, alongside an increase of EGP 747.5 billion in foreign assets held by other banks. This increase in assets reflects a stronger financial position and improved investor confidence in the Egyptian economy.
Egypt’s ability to manage its external debt while attracting significant foreign investment is a testament to the effective policies implemented by the Central Bank of Egypt and the government. With ongoing reforms and strategic economic measures, Egypt is well-positioned to continue its trajectory of growth and stability in the coming years.
