Central Bank Data showed that Egypt's net foreign assets rose by 47.28 billion Egyptian pounds in December, rising for the second consecutive month after the bank allowed the Egyptian pound to fall sharply in October.
Net foreign assets improved to minus 494.3 billion pounds from 541.5 billion pounds in November. That means an increase of about $2.06 billion based on the central bank's exchange rates.
Before the pound's devaluation in October, the central bank relied on net foreign assets to help support the local currency. The Ukraine crisis in February 2022 sparked a currency crisis that prompted Egypt to start negotiations with the International Monetary Fund for a financial aid package.
Net foreign assets stood at EGP 248 billion in September 2021 before starting to decline. The change in net foreign assets represents the banking system's net transactions with the foreign sector, including those of the central bank.
Source (Al Khaleej Newspaper, UAE, Edited)
