Egypt's Net Foreign Assets Surge to Record High

Egypt's net foreign assets (NFA) soared to a record $29.54 billion in January, marking a $4.02 billion increase, according to data released by the Central Bank of Egypt on Monday.

The surge was fueled by robust inflows of U.S. dollars, bolstered by Gulf investments, strong remittances from Egyptians working abroad, and a thriving tourism sector.

Remittances from Egyptians working overseas reached a record $4 billion in December, bringing the total for the year to $41.5 billion, a significant increase from the $29.6 billion recorded the previous year.

The central bank's data also revealed a substantial increase of approximately $1.67 billion in the foreign assets held by commercial banks. Meanwhile, the central bank's assets remained relatively stable. Both commercial banks and the central bank experienced a decrease in net foreign liabilities.

Egypt's net foreign assets, encompassing assets held by both the central bank and commercial banks, had turned negative in February 2022 after the central bank intervened to support the currency against the U.S. dollar. The NFA returned to positive territory in May after a sharp devaluation of the currency in March.