CAIRO: Egypt’s net foreign assets (NFAs) slid by $592.1 million in December, their third decline in three months, after a series of foreign liabilities put payments under pressure, central bank data showed on Wednesday.
NFAs declined to the equivalent of $5.29 billion from $5.96 billion at the end of November, according to Reuters calculations based on the official central bank currency rates. The decline followed a $3.25 billion drop in November.
Egypt has been using NFAs, which include foreign assets at both the central bank and commercial banks, to help to prop up its currency since as long ago as September 2021. NFAs turned negative in February 2022 and only returned to positive territory in May last year.
Egypt needed to pay dollars in December as Egyptian pound treasury bills held by foreign investors matured and nearly $1 billion in IMF loan repayments and payments for natural gas imports came due, bankers, brokers and analysts said.
Egypt’s NFA position for January is likely to improve following the sale of $2 billion in international bonds, analysts added.
Foreign assets rose in December at both the central bank and commercial banks, but foreign liabilities increased at both by even more. (Reporting by Patrick Werr; Editing by Kevin Liffey)
