For the first time in 10 months, the position of net foreign assets in the Egyptian banking sector improved at the end of last July, according to recent data from the central bank.
The net foreign assets deficit at the end of July narrowed to about 367.8 billion pounds ($19.4 billion), compared to 370.1 billion pounds ($19.7 billion) at the end of June.
Net assets were calculated by the average dollar exchange rate at 18.9526 at the end of July and 18.8028 pounds at the end of June, according to central bank data.
Commercial banks' deficits at the end of July were about 191.5 billion pounds ($10.1 billion), down from 216.6 billion pounds ($11.52 billion) at the end of June.
The central bank's deficit stood at about 176.3 billion pounds ($9.3 billion) at the end of July, compared to 153.5 billion pounds ($8.16 billion) at the end of June, according to bank data.
The net foreign assets in the banking sector had started to decline since October 2021, and then turned into a negative value (that is, his obligations are greater than his foreign currency assets) starting last February, in conjunction with the Ukrainian war.
Egypt is under pressure on foreign currency liquidity due to the exit of hot money that was one of the largest financiers of the state budget and the current account deficit, at a time when the Russian-Ukrainian war has expanded pressure on the tourism sector and the trade balance.
Egypt is seeking to conclude an agreement with the International Monetary Fund, to obtain a new loan, in order to restore the confidence of foreign investors in the market, and to address the crisis of foreign currency.
