Banking & Finance Egypt’s net foreign assets sink again in August By Reuters October 3, 2022 REUTERS/Mohamed Abd El Ghany Egypt has been suffering a severe shortage of foreign currency despite a 14.5 percent devaluation on October 27 Egypt’s net foreign assets fell by 18.06 billion Egyptian pounds ($925 million) in August, resuming a near year-long decline that had paused the month before, according to central bank data. The central bank has been relying on net foreign assets (NFAs) – banking system assets owed by non-residents minus liabilities – to help support the currency. They include foreign assets held by the central bank. NFAs fell to minus 385.9 billion pounds at the end of August, down from minus 367.8 billion a month earlier. In July they rose by 2.27 billion pounds after nine months of decline. In September 2021, NFAs stood at a positive EGP 248 billion. Russia’s invasion of Ukraine in February sparked further investor unease, unleashing an even bigger flood of outflows. Changes in the amount of NFAs represent net transactions of the banking system with the foreign sector, including those of the central bank, according to the bank.
