Egypt’s banking sector net foreign assets surge $20.3 billion in 2025

The Central Bank of Egypt announced a cumulative $20.3 billion increase in net foreign assets for the Egyptian banking sector throughout 2025. This surge was driven by an improved external economic position and favorable exchange rate developments.

The Central Bank of Egypt (CBE) announced on Sunday that net foreign assets (NFA) in the Egyptian banking sector rose by a cumulative $20.3 billion throughout 2025. According to the CBE's monetary policy report, the sector's total NFA increased by $4.7 billion in the final quarter of 2025, reaching $25.5 billion in December, up from $20.8 billion in September. This marks the highest level since July 2012.

The central bank's own NFA climbed for the eighth consecutive month, hitting $15.1 billion in January 2026—the highest since September 2021—following $13.3 billion in December 2025. The CBE partly attributed this growth to rising global gold prices.

Commercial banks also recorded a notable rise, with their NFA up $2.4 billion to $12.2 billion in December 2025, the highest since February 2014. This was supported by increased foreign currency resources, including remittances from Egyptians abroad and higher foreign investment in Egyptian government debt instruments.

The CBE noted that the overall upward trend in foreign assets aligns with improvements in Egypt's external economic situation and exchange rate developments since April 2025.

Liittyvät artikkelit

Net foreign assets of Egypt’s banking sector continued their upward trajectory, reaching $29.5 billion (EGP 1.385 trillion) in January 2026, up $4 billion from $25.5 billion in December 2025. This follows a $20.3 billion cumulative rise throughout 2025, reflecting sustained stability and capacity to meet external obligations, per Central Bank of Egypt data.

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Egypt’s Central Bank reported that the banking sector’s net foreign assets dropped 7.1% in February 2026 to $27.39bn from $29.51bn in January. The decline stems from commercial banks funding a partial exit of foreign investors from local debt amid the Iran war fallout. Meanwhile, local liquidity rose to EGP 14.286trn.

The Financial Regulatory Authority (FRA) has released its 2025 annual report, titled From Regulation to Empowerment, documenting unprecedented advances in Egypt's non-banking financial activities. Mohamed Farid, the FRA chairperson, described 2025 as a turning point in reaping the benefits of reforms launched since 2022.

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Hassan Abdalla, governor of Egypt's Central Bank, joined the second AlUla Conference for Emerging Market Economies, stressing that the bank's role is not to push the currency up or down but to build a resilient policy framework. He outlined Egypt's economic reform program launched in March 2024, noting inflation's drop from around 40% to nearly 12%. He also highlighted improvements in key economic indicators amid global challenges.

 

 

 

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