Net Foreign Asset Deficit Drops to USD 1.36 Billion in March 2024

The Central Bank of Egypt has announced another significant reduction in the country’s Net Foreign Asset (NFA) deficit for March 2024, dropping to USD 1.36 billion (EGP 65.38 billion) by the end of the month.

The new figure marks a significant decline from previous months; the deficit stood at EGP 270.65 billion in February, and over EGP 352 billion in January. The reduction follows key transactions in large scale property development, as well as currency reforms.

The influx of foreign currency from various international institutions, chiefly the UAE’s sovereign wealth fund as part of the USD 35 billion Ras El Hekma deal, has shored up reserves and leveled off the NFA deficit, with the second tranche of the deal - worth USD 20 billion - due to be disbursed by the end of May. The country has also agreed several loan programmes, most importantly with the International Monetary Fund (IMF). This second tranche of the USD 8 billion programme - worth USD 820 million - was recently received by the central bank.