Ahmed Kamel – Egypt Daily News
The Central Bank of Egypt (CBE) has reported a continued improvement in its foreign currency position, with net foreign assets rising to approximately $10.49 billion (equivalent to EGP 511.2 billion) by the end of July 2025. This marks an increase from around $10.1 billion (EGP 499.6 billion) at the end of June, reflecting sustained progress in Egypt’s financial stability metrics.
Net foreign assets (NFAs) represent the difference between the central bank’s foreign currency-denominated assets and its liabilities. As such, they are a key indicator of the strength and resilience of a country’s monetary system. A positive balance suggests that the central bank holds more foreign assets than it owes, which enhances its capacity to stabilize the local currency, manage external shocks, and support the broader economy.
This recent data confirms a broader positive trend that began in mid-2024. In May of that year, the CBE announced that it had shifted from a net foreign asset deficit to a surplus for the first time since March 2022. The shift was significant: by the end of May 2024, net foreign assets recorded a surplus of approximately EGP 458.6 billion, compared to a deficit of EGP 36.07 billion just a month earlier in April.
The return to surplus territory has been attributed to a combination of policy reforms, improving investor sentiment, rising foreign inflows, and support from international partners. The Egyptian government has also taken steps to strengthen macroeconomic fundamentals, including tightening monetary policy and liberalizing the exchange rate regime, measures that have encouraged capital inflows and improved foreign currency liquidity.
Analysts view the steady increase in NFAs as a positive signal for Egypt’s external position and credit outlook. It also provides the central bank with greater room to maneuver in managing inflationary pressures and supporting economic growth, particularly as the country continues to recover from the global economic disruptions of recent years.
As of now, the upward trend in Egypt’s net foreign assets points to a more stable and confident financial environment, reinforcing the central bank’s role as a key anchor for monetary and exchange rate stability.
