Egypt’s foreign assets drop after two-year high in may

Egypt’s net foreign assets (NFAs) fell by $3.53 billion in August. This decline follows a peak reached in May, according to central bank data released Thursday.

NFAs decreased to 473.2 billion Egyptian pounds in August from 644.8 billion pounds in July.

This translates to $9.72 billion at the end of August and $13.25 billion at the end of July.

The country has relied on its NFAs to support its currency since September 2021.

Notably, these assets turned negative in February 2022, marking a significant financial challenge.

In response to economic pressures, Egypt is renewing talks with the International Monetary Fund.

The discussions aim to soften the terms of an $8 billion financial support package signed in March.

August saw a notable drop in foreign assets at commercial banks.

However, foreign assets at the central bank showed a slight increase during the same period.

Despite these fluctuations, foreign liabilities remained stable at both commercial and central banks.

These developments highlight ongoing economic challenges within the country.

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