Egypt's banking sector net foreign assets rise to $23.73 billion in November

The Central Bank of Egypt reported that the net foreign assets of the banking sector rose to about $23.732 billion in November 2025, up from $22.656 billion in October. This marks a $1.1 billion increase, or 5% monthly growth. The upward trend in net foreign assets has continued for the sixth consecutive month.

The Central Bank of Egypt (CBE) announced that the net foreign assets of the Egyptian banking sector reached approximately $23.732 billion, equivalent to EGP 1.13 trillion, in November 2025. At the central bank level, these assets rose 1% to $11.88 billion, while commercial banks' holdings increased 9% to $11.85 billion, marking the third consecutive month of such growth.

The total foreign assets of the banking sector, including the central bank and commercial banks, stood at EGP 4.421 trillion in November, up from EGP 4.366 trillion in October. Total foreign liabilities were EGP 3.290 trillion, slightly down from EGP 3.295 trillion the previous month.

Net foreign assets represent the difference between foreign currency assets, such as deposits and securities held by banks, and their foreign currency liabilities. A positive figure indicates a surplus exceeding obligations.

Egypt's banking sector entered negative net foreign assets in February 2022 due to a foreign currency shortage from the Russia-Ukraine war and global inflationary pressures. It returned to positive territory in May 2024 following the Ras El-Hekma deal.

Banking expert Mohamed Abdel Aal attributed the recent rise to stronger inflows from remittances, exports, and tourism revenues. He stated that 'sustained growth in net foreign assets is essential for maintaining confidence in banks' ability to meet obligations.' It also supports the Egyptian pound against the US dollar.

Banking expert Shaimaa Wagih explained that 'a positive position indicates a foreign currency surplus exceeding liabilities, boosting investor confidence in monetary stability.' She noted the shift from negative in 2022 to positive since 2024 reflects successful monetary policies. This surplus allows the central bank to intervene in the forex market to stabilize the pound, finances the real economy, and reduces reliance on external borrowing. It enhances Egypt's appeal for foreign direct investment and improves liquidity management during economic volatility.

Wagih emphasized that the increase is not temporary but a long-term result of policies like regulating the forex market and bolstering reserves. She called for monitoring inflows and directing surpluses to productive sectors, such as small and medium enterprises and exports.

Labaran da ke da alaƙa

The aggregate balance sheet of banks operating in Egypt's local market, excluding the central bank, climbed to EGP 24.752trn by end-August 2025, driven by household deposits. The Central Bank of Egypt reported a EGP 477bn increase from end-June 2025. This growth highlights the banking sector's resilience amid rising domestic liquidity.

An Ruwaito ta hanyar AI

Banks operating in the Egyptian market recorded net profits of EGP 433.772bn in the third quarter of 2025, up from EGP 274.938bn in the second quarter, according to data from the Central Bank of Egypt. The CBE's latest report stated that net interest income reached EGP 766.842bn, while net operating income rose to around EGP 1.022trn.

Egypt's Minister of Investment and Foreign Trade Hassan El-Khatib announced that private sector investment rose 73% over the past year and continued to increase by 48% in the first quarter of this year. These statements came during meetings with the European Bank for Reconstruction and Development (EBRD) on the sidelines of the World Economic Forum in Davos. The ministers discussed boosting the bank's investments in Egypt and enhancing the national economy's competitiveness.

An Ruwaito ta hanyar AI

Egypt has secured $9.5bn in concessional financing to support its state budget since early 2023, tied to structural and sectoral reforms, Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat announced. She emphasized that reforms promoting growth and employment will continue as the country shifts from addressing challenges to building stability.

 

 

 

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