Egypt’s foreign assets deficit declines by 3% in July

Ahram Online , Sunday 3 Sep 2023

The deficit in Egypt's foreign assets deficit declined by nearly 3 percent - EGP 24.92 billion ($807.95 million) - on a monthly basis in July, as assets rose at a pace faster than the growth in liabilities.

US dollar bills. Ahram Gate.
US dollar bills. Ahram Gate.

 

According to data released by the Central Bank of Egypt (CBE), the country's net foreign assets deficit decreased to EGP 812.41 billion ($26.34 billion) in July 2023, down from EGP 837.329 billion ($27.15 billion) in June 2023.

The deficit surged by 120 percent year-on-year from EGP 369.181 billion in July 2022.

The net foreign asset deficit is the net total value of foreign assets owned by the country's banks minus their foreign liabilities.

Total foreign assets rose to EGP 1,475 billion in July 2023 from EGP 1,438 billion in June. 

Meanwhile, foreign liabilities increased to EGP 2,287 billion in July, compared to EGP 2,275 billion a month before.

In July, Egypt’s net international reserves increased by $71.7 million to $34.87 billion compared to the previous month.

Egypt's external debt increased by 4.8 percent to $165.3 billion in Q3 of FY 2022/23, up from $157.8 billion in Q3 of the previous year.

The country seeks to tackle a critical shortage of US dollars from which it has suffered for almost a year and a half, to bridge an estimated $17 billion financing gap until 2026.

The Egyptian government has secured $5 billion from selling state-owned assets in the past month, with $5 billion worth of new deals planned, as part of a national privatization program.

The program is part of Egypt's commitments under its $3 billion loan program with the International Monetary Fund (IMF).

The country seeks to accelerate the implementation of the IPO program to finalize the first and second reviews of the deal, which Morgan Stanley expects to be conducted in the coming months. 

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