Egypt’s net international investment position (NIIP) – the external assets minus the external liabilities – reached negative $255.6bn in March 2023, up from negative $234.1bn in June 2022, according to the Central Bank of Egypt (CBE). This increase in negative NIIP was mainly attributed to the rise in the liabilities and to the decrease in the assets as compared to June 2022.
Claims on non-residents (assets) decreased by $6.6bn (9.5%), totaling $62.4bn in March 2023, compared to June 2022. This decrease was driven by the decline in other investments, by $7.8bn (29%) to register $19bn (representing 30.4% of total assets). This drop was prominent in currency and deposits.
Meanwhile, other claims on nonresidents realized a sustained positive increase as follows:
Reserve assets by $912m (2.9%), to reach $32.4bn (representing 52% of total assets).
Direct investment abroad by $257.5m (2.9%) to $9.3bn (representing 14.9% of total assets).
Portfolio investment abroad by $46.6m (2.8%) to $1.7bn (representing 2.7% of total assets).
Liabilities to non-residents increased by $14.9bn (4.9%) to $318.0bn in March 2023, compared to end of June 2022. This increase was driven by the rise in other investments by $9bn (7.2%) to register $135.6bn (representing 42.7% of total liabilities).
Long-term loans to both banks and other sectors increased by $3.9bn and $1.2bn, respectively.
Short-term currency and deposits at the CBE also increased by $1.8bn. Additionally, foreign direct investment in Egypt rose by $7.9bn (5.5%) to reach about $151.1bn (representing 47.5% of total liabilities). However, portfolio investment in Egypt decreased by $2.0bn (6.1%) to $31.3bn (representing 9.8% of total liabilities).
Egypt’s negative net IIP to GDP increased to 59.5% in March 2023, from 49% in June 2022, reflecting the rise in liabilities to GDP to 74.1% from 63.4%.
Assets to liabilities ratio decreased to 19.6% in March 2023, from 22.8% in June 2022.
