Economy News – Follow-up
Recent data from the Central Bank of Egypt indicates a significant increase in the nation’s net foreign assets, which surged by $2.74 billion. This uptick appears to be primarily driven by the issuance of $2 billion in dollar-denominated bonds.
As reported based on the official exchange rates from the Central Bank, Egypt’s net foreign assets have risen to $8.70 billion, compared to $5.96 billion at the end of December. This notable growth comes three months after a decline that occurred late last year.
On January 29, Egypt successfully completed its issuance of $2 billion in international bonds, marking the first international bond release in dollars in four years.
The net foreign assets encompass both the net assets of the Central Bank and commercial banks. Since September 2021, these assets have been utilized to support the national currency.
The net foreign assets fell into negative territory in February 2022 and did not return to positive figures until May of the previous year.
Bankers and analysts noted that Egypt faced dollar payment obligations in December, primarily related to treasury bills denominated in Egyptian pounds held by foreign investors, financing payments to the International Monetary Fund totaling approximately $1 billion, alongside commitments for natural gas imports.
While foreign assets of both the Central Bank and commercial banks increased in January, it is important to note that foreign obligations also rose concurrently.
Stay Informed: To receive more updates, subscribe to our channel.
