Egypt’s Net Foreign Asset (NFA) surplus experienced a notable increase in September, rising 6 percent to reach $10.31 billion from $9.7 billion in August, according to Central Bank of Egypt (CBE) data on November 2.
This marks the fifth consecutive month of surplus for the banking sector since it shifted from a prolonged deficit in May 2024, reversing a negative trend that began in February 2022.
While the overall banking system showed positive momentum, commercial banks continued to face challenges with negative net foreign assets. In September, the deficit in commercial banks narrowed to roughly $132 million, down from $536 million in August. Although total assets increased by 3.3 percent to $28.5 billion, this was balanced by a 1.8 percent rise in liabilities, bringing them to around $28.6 billion.
The CBE also reported a slight increase in its net foreign asset surplus, up by 1.7 percent to $10.4 billion from $10.3 billion the previous month. This improvement came despite a $109 million decrease in total assets to $45.2 billion, offset by a $64 million reduction in liabilities to $34.7 billion.
These gains reflect broader economic shifts, including the Ras El Hekma agreement, the floatation of the Egyptian pound, and a surge in foreign portfolio investments, all of which have helped stabilize the banking sector and enhance net foreign assets.
