Data from the Central Bank of Egypt showed that Egyptian net foreign assets declined last February, as they fell by 60 billion Egyptian pounds ($3.29 billion) to negative 50.3 billion pounds.
The shortage of foreign currency helped the central bank devalue the pound by 14 percent on March 21. The value of net foreign assets at the end of last September amounted to 186.3 billion pounds.
Net foreign assets represent the banking system's assets owed by non-residents minus liabilities. According to the Central Bank, the change in the volume of net foreign assets reflects the banking system's net transactions with the foreign sector, including those of the Central Bank. Any movement represents a change in the flow of imports or exports, the exit of foreign portfolios, external debt repayments, changes in the flow of workers' remittances, or a slowdown in tourism.
According to the Central Bank, the remittances of Egyptians abroad increased to 31.5 billion dollars in 2021 from 29.6 billion dollars a year ago. Net foreign reserves also rose to $40.994 billion in February from $40.98 billion in January.
Source (Al-Sharq al-Awsat Newspaper, Edited)
