Egypt’s foreign assets deficit narrows EGP 5.2 bln in November

Ahram Online , Tuesday 2 Jan 2024

The foreign assets deficit in the Egyptian banking system declined by EGP 5.25 billion to reach EGP 833.96 billion ($26.9 billion) in November 2023, according to data released by the Central Bank of Egypt (CBE).

Central Bank of Egypt (CBE) sign. Photo courtesy of State Information Service website.
Central Bank of Egypt (CBE) sign. Photo courtesy of State Information Service website.

 

The released figure includes the foreign asset deficit at both the CBE and banks in Egypt.

Total foreign assets (CBE and banks) rose to EGP 1.489 trillion in November from EGP 1.482 trillion in October.

Meanwhile, total foreign liabilities inched higher to EGP 2.323 trillion in November from EGP 2.322 trillion the month before.

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

Egypt is actively seeking additional funding to close a $17 billion financing gap by 2026, which is projected to be between $6-8 billion for FY2023/2024.

The country must also procure more hard currency to honour its commitment to the International Monetary Fund (IMF).

Egypt is currently involved in a four-year $3 billion loan programme with the IMF that necessitates a series of economic reforms, including adopting a flexible exchange rate.

The country seeks to collect $191 billion in annual US dollar liquidity by 2026.

Short link: