Friday, the data of the Central Bank of Egypt showed that net foreign assets recorded about minus 305.1 billion pounds last May, with a decrease of about 67.7 billion pounds from April. This is the eighth consecutive monthly decrease in the country’s net foreign assets.
A former central bank official said that this is one of the lowest levels in the country’s history, if not the lowest ever.
Reuters quoted Hany Geneina, former head of research at Beltone Financial Holding, who believes the continued decline in net foreign assets is a reason for the continued decline of the Egyptian pound against the US dollar in recent months, which is likely due to the Central Bank’s stopping pumping dollars into the market. Geneina attributed the rise in the deficit to the continued increase in food and fuel prices, the payment of Egypt’s external obligations due this year, and the recent borrowing of $11 billion by the Central Bank.
The almost continuous decline in net foreign assets began in February 2021, when it was 320.2 billion pounds before turning negative last February after the Russian invasion of Ukraine.