Egypt Daily News – The recent increase in the Central Bank’s net foreign assets, moving from a deficit to a surplus, indicates a significant shift in the bank’s financial stability.
As of July 2024, the surplus reached $10.5 billion (approximately 508.58 billion pounds), representing a continuous increase for three consecutive months since transitioning to surplus in May 2024.
In May, the figure stood at 458.630 billion pounds, marking a notable recovery from a deficit of 36.070 billion pounds in April.
This transition is particularly remarkable given the long-standing deficit that began in March 2022, which at its peak reached 93.3 billion pounds and persisted for over two years.
The net foreign assets of the Central Bank are crucial for assessing the stability of the banking system, emphasizing the balance between the bank’s assets and liabilities in foreign currencies.
A positive net foreign assets position suggests an improved capacity to meet foreign obligations, which enhances the overall economic outlook and fosters confidence among investors and stakeholders.
