Egypt's net foreign assets fell by EGP 160.2 billion in January, due to maturing debts and importers liquidating backlogs at ports.
According to CBE data, net foreign assets stood at minus 654.43 billion pounds from minus 494.3 billion at the end of December. That means a drop of up to $1.70 billion, based on the central bank's exchange rates at the end of the month.
The central bank allowed the Egyptian pound to fall by about 24 percent in January. Net foreign assets came under pressure, partly due to maturities on external debt and the liquidation of imports accumulated at customs before Ramadan. The decline in net foreign assets reflected the improvement over the past two months. December's net foreign asset deficit shrank by $2.06 billion after the currency depreciated 14.5 percent in late October as part of a financing program agreed by Cairo with the International Monetary Fund. Before the pound's devaluation in October, the central bank relied on net foreign assets to help prop up the local currency. Russia's invasion of Ukraine in February last year sparked a currency crisis that prompted Egypt to start negotiations with the IMF for a financial aid package. Net foreign assets stood at EGP 248 billion in September 2021 before starting to decline.
Source (Al-Asharq Al-Awsat Newspaper, Edited)
