Egypt’s banking sector records $5.95bn net foreign asset surplus in November 2024
The Central Bank of Egypt (CBE) announced that the banking sector’s net foreign assets (NFA) reached a surplus of $5.95bn (EGP 295.6bn) in November 2024, down from a surplus of $9.2bn (EGP 450.861bn) in October 2024.
This marks a continued upward trend, with NFA in the sector turning positive in May 2024, when it posted its first surplus since January 2022. This followed a deficit of EGP 174.385bn in April 2024, signaling a significant recovery.
According to the Central Bank, total foreign assets within the banking system—including both the central bank and commercial banks—decreased to the equivalent of EGP 3.325trn by November’s close, compared to EGP 3.584trn in October 2024. Meanwhile, liabilities fell to EGP 3.029trn, down from EGP 3.133trn.
In related news, the CBE revealed that the value of foreign currencies in its reserves rose to $36.436bn in December 2024, up from $36.140bn in November, reflecting a $296m increase.
Net international reserves also saw a rise, reaching $47.109bn in December, an increase of $157m from November’s $46.952bn.
Conversely, the value of gold holdings in Egypt’s reserves decreased to $10.644bn in December, down from $10.777bn in November. Special Drawing Rights (SDRs) also fell to $31m, down from $37m.
Egypt’s foreign reserves include a basket of major international currencies such as the US dollar, euro, British pound, Japanese yen, and Chinese yuan. The distribution of these currencies is based on their exchange rate stability and is periodically adjusted according to a plan set by the CBE.
Foreign exchange reserves serve several critical purposes: ensuring the availability of essential goods, covering external debt repayments, and supporting the economy during exceptional conditions, especially when revenues from key hard-currency-generating sectors face downturns.
The post Egypt’s banking sector records $5.95bn net foreign asset surplus in November 2024 appeared first on Dailynewsegypt.