Egypt’s net foreign assets increased in March following the passage of the IMF assessment

In March, Egypt’s net foreign assets surged by $4.9 billion, according to data from the central bank, seemingly propelled by the approval of the fourth review of the country’s IMF programme.

Net foreign assets increased to $15.08 billion from $10.18 billion at the end of February, as reported by Reuters based on official central bank currency exchange rates.

In early March, the International Monetary Fund approved the disbursement of $1.2 billion to Egypt following the completion of its review of the country’s $8 billion economic reform programme. A request for a $1.3 billion arrangement under the IMF’s resilience and sustainability facility was also approved.

After the approval, foreign investors became notable buyers of Egyptian pound treasury bills, as two bankers indicated that one-year bills purchased following the March 2024 IMF agreement reached maturity.

Since September 2021, Egypt has been utilizing foreign assets, including those held by the central bank and commercial banks, to support its currency. Net foreign assets fell into negative territory in February 2022 and only regained a positive status in May of the previous year.

In February, there was an increase in foreign assets at both the central bank and commercial banks, whereas foreign liabilities saw a rise at the central bank but a decrease at commercial banks.