The net foreign assets deficit in the Egyptian banking system worsened in September by 3.4 percent month-on-month, after a temporary improvement, to reach $ 26.785 billion according to the exchange rate of the pound against the dollar in the official market.
According to the latest data from the Central Bank of Egypt, net foreign assets in the banking sector began to decline in October 2021, and then turned negative starting in February 2022, coinciding with the Russian-Ukrainian war.
Egypt has been suffering from a severe shortage of dollar liquidity since the outbreak of the Russian-Ukrainian war and its aftermath, which led to the exit of about $ 22 billion of hot money. The dollar exchange rate gap between the informal market and banks has also widened by more than 50 percent at times, reducing the volume of dollar transactions in Egyptian banks.
Source (Bloomberg East Website, Edited)
