Egypt Sees Largest Historical Decline in Foreign Debt Value

The Central Bank of Egypt (CBE) said on Monday that the country had succeeded in converting the net foreign deficit into a surplus by the end of last June to $10.3 billion.

This came in a statement issued by the CBE's media center, citing a high-ranking source in the bank, in which he said that the country’s net foreign assets recorded a deficit of $11.4 billion at the end of January.

Net foreign assets represent the assets of the Central Bank of Egypt and the country's commercial banks, held by non-residents, minus their liabilities.

According to the Central Bank, “external debt recorded the largest historical decline, with a value exceeding $14 billion since December 2023.”

While the Central Bank did not mention the value of the external debt after paying $14 billion, the value of the debt last December amounted to $168 billion according to official data, which means that the latest debt figures at the end of last June amounted to $154 billion.

The source added: “Egypt’s foreign reserves exceed international safety levels, and record the highest level ever at a value of $46.38 billion.”

He continued: “We witnessed a 200% increase in foreign exchange resources for the local market and an increase in Egyptian remittances by more than 100% since the liberalization of the exchange rate,” without providing numbers.

In March 2024, the Central Bank of Egypt announced the liberalization of the exchange rate of the pound, dropping to approximately EGP 48 currently, from EGP 31, on the eve of the flotation.