The Central Bank of Egypt’s net foreign assets (NFA) achieved a surplus for the fourth consecutive month, reaching $10.3bn, equivalent to EGP 499.269bn, in August 2024. It compared to $10.5bn, or EGP 508.58bn, recorded in July.
Net foreign assets at the central bank are a key measure of banking stability, reflecting the difference between the bank’s foreign currency assets and liabilities.
In May, the central bank revealed that its net foreign assets had shifted from deficit to surplus for the first time since March 2022. In April, the NFA recorded a surplus of EGP 458.630bn, compared to a deficit of EGP 36.070bn.
Additionally, a recent report from the central bank showed that reserve money (MO) reached EGP 1.968trn in August 2024, up from EGP 1.689trn in December 2023.
Reserve money consists of currency in circulation outside the central bank’s vaults and local currency deposits of banks held at the central bank. It is one of the central bank’s intermediate operational targets for managing domestic liquidity.
The report also highlighted that currency in circulation outside the central bank’s vaults stood at EGP 1.269trn in August, compared to EGP 1.145trn in December. Meanwhile, local currency bank deposits with the central bank reached EGP 699.648bn, up from EGP 543.5bn.
