Egypt’s Net Foreign Assets Rise as External Position Continues Gradual Strengthening

The Central Bank of Egypt’s net foreign assets (NFA) reached $15.22 billion at the end of May 2026, marking a slight increase from $15.16 billion recorded at the end of April, according to official data. This modest rise reflects a continued and gradual consolidation of Egypt’s external financial position, a process that began when NFA returned to positive territory in May 2024.

At the level of the overall banking sector, which includes both the central bank and commercial banks, net foreign assets climbed to approximately $22.9 billion in April 2026, equivalent to 1,229 billion Egyptian pounds. This compares to $21.32 billion in March, indicating a steady improvement.

The increase points to a structural strengthening in the foreign exchange position of Egypt’s financial system

During the same period, total foreign assets held by the banking sector reached 5,049 billion Egyptian pounds in April, while total foreign liabilities amounted to 3,820 billion pounds. These figures highlight the scale of external financial holdings and obligations within the system.

On an annual basis, monetary reserves showed notable growth. By the end of May 2026, reserves had risen to 2,570 billion Egyptian pounds, compared to 2,430 billion pounds a year earlier. This increase reflects sustained growth in foreign currency inflows into the domestic market.

This improvement is also evident in Egypt’s net international reserves, which reached $53.134 billion at the end of May 2026, up slightly from $53.009 billion at the end of April. Importantly, reserves have remained above the $50 billion mark for the seventh consecutive month, indicating a stable and strengthened reserve position.

Several key factors have contributed to the rise in net foreign assets. Growth in reserves and external assets has been supported by a recovery in remittances from Egyptians living abroad, increased tourism revenues, and stronger foreign investment in government debt securities.

Remittances, in particular, continue to play a vital role. In February 2026, remittance inflows reached approximately $3.8 billion, representing a 25.7% increase compared to the $3 billion recorded in the same month of the previous year. Over the first ten months of the 2025/2026 fiscal year, total remittances from Egyptians working abroad amounted to $39.2 billion, underscoring their importance as a steady source of foreign currency.

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(Featured image by Roaming Pictures via Unsplash)

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First published in Financial Afrik. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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