Egypt’s Net Foreign Assets Turned Sharply Negative

Poverty rate hits 32.5% in Egypt

According to central bank statistics released on Sunday, Egypt’s net foreign assets (NFAs) fell substantially in February, falling by 60 billion Egyptian pounds ($3.29 billion) to minus 50.3 billion pounds.

It was the sixth month in a row that they had lost ground. The central bank devalued the pound by 14 percent on March 21 as a result of an outflow of foreign cash. NFAs totaled 186.3 billion pounds at the end of September.

NFAs are assets owing by non-residents minus liabilities in the banking system. According to the bank, changes in their size imply net banking system transactions with the foreign sector, including those of the central bank.

Analysts believe that any fluctuation might indicate changes in import or export flows, foreign portfolio withdrawals, debt repayment, changes in the flow of worker remittances, or a downturn in tourism.

Other discussion is being held to further boost the investment inflow into Egypt. Meanwhile, according to an Egyptian cabinet statement, the Egyptian and Saudi governments have inked an agreement to assist and stimulate investments in Egypt by Saudi Arabia’s sovereign wealth fund.

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