Finance Egypt’s foreign assets deficit plunges after UAE land sale By Reuters April 2, 2024, 5:41 AM Reuters Egypt devalued its currency to under EGP50 to the dollar as part of the March 6 IMF agreement Egypt’s deficit in net foreign assets (NFAs) shrank by EGP217.1 billion ($7.04 billion) in February, according to central bank data, after a $5 billion payment from the sale of development rights to prime Mediterranean land. Egypt received the initial $5 billion payment from the UAE in its $24 billion deal at Ras El Hekma peninsula west of Alexandria, Prime Minister Mosfafa Madbouly announced in February. The February deficit dropped to EGP679 billion. The figure did not yet reflect an $8 billion expanded financial support program with the International Monetary Fund signed on March 6. Commercial bank foreign assets surged in February by EGP911.3 billion month-on-month, while their liabilities dipped by EGP15.73 billion, according to the data. Central bank foreign liabilities decreased by EGP81.6 billion. NFAs represent both central bank and commercial bank assets held by non-residents, minus their liabilities. The central bank had been drawing on the country’s NFAs to help support Egypt’s currency over the past two and a half years. In September 2021, NFAs stood at a positive EGP248 billion. Egypt devalued its currency to under EGP50 to the dollar as part of the March 6 IMF agreement after having left it fixed at EGP30.85 to the dollar for a year. Since then it has strengthened to EGP47.10 to the dollar.
