In a remarkable turn of economic events, Egypt’s foreign assets in the banking sector soared to $15.04 billion in March, marking a significant 47.5% increase from February’s $10.2 billion. The Central Bank of Egypt (CBE) announced this positive trend, offering a beacon of hope following a challenging period marked by a decline in net foreign assets.
The uptick in March signifies the third consecutive month of recovery, following a sharp decline from $10.3 billion in September to a low of $5.2 billion in December. Analysts attribute this rebound to a combination of seasonal pressures on foreign currency and an increased demand for the U.S. dollar during the latter months of the year.
Dr. Ahmed Shalaby, a senior economic analyst at the Cairo Institute for Economic Studies, commented, “This rebound showcases Egypt’s resilience and ability to maneuver through global economic challenges. The strategic management of foreign assets has been instrumental in this recovery.”
Commercial banks reported their first surplus since August, as net foreign assets reached $2.5 billion in March. This improvement, from a deficit of $1.9 billion in February, reflects the broader macroeconomic stability. With foreign assets rising to $30.6 billion juxtaposed against stable foreign liabilities of $28.1 billion, the sector’s outlook remains optimistic.
The CBE also noted a surplus in net foreign assets, hitting $12.5 billion in March. This slight increase from February’s $12.1 billion underscores the cautious yet steady progress toward financial recovery. Foreign assets grew marginally to $46.4 billion, while foreign liabilities saw a minor decrease to $33.8 billion.
This current surplus has surpassed the previous high of $14.3 billion recorded in May 2024, marking the first surplus in over two years. This milestone follows the successful completion of the Ras El Hikma deal’s final tranche, which injected approximately $14 billion in foreign inflows. The period of deficit began in February 2022, triggered by the geopolitical ripple effect of Russia’s invasion of Ukraine, which saw a $20 billion exodus in foreign investments.
For Egypt, this upward trajectory in foreign assets is more than just a numerical achievement—it’s a testament to the nation’s strategic financial maneuvers and resilience amid global uncertainty. “The global economic climate remains unpredictable, but Egypt’s proactive financial strategies are paving the way for sustained economic growth,” Dr. Shalaby added.
