Egypt's banking sector achieves LE 626.6B surplus in net foreign assets

In June 2024, the Central Bank of Egypt (CBE) disclosed that the net foreign assets of the Egyptian banking system had reached a surplus of LE 626.6 billion, marking the second consecutive month of surplus.

 

This positive trend followed a surplus of LE 676.4 billion in May 2024, a significant increase from the LE 174.385 billion deficit recorded in April of the same year.

 

Notably, May's surplus was the first since January 2022 when a surplus of EGP 9.674 billion was noted.

 

In a July announcement, the CBE revealed that Egypt's net foreign reserves had reached a historic peak of $46.38 billion in June 2024, representing a $13.26 billion increase since August 2022.

 

Furthermore, there was a notable surge in foreign exchange flows to the local market, with a remarkable 200 percent increase, including a rise of over 100 percent in remittances from Egyptians abroad following the exchange rate unification.

 

The upsurge in currency flows played a key role in offsetting the foreign assets deficit of the CBE, resulting in a surplus of $10.3 billion in June 2024, a stark contrast to the $11.4 billion deficit seen in January 2024. 

 

Earlier in March, during a special meeting, the Monetary Policy Committee (MPC) of the CBE decided to raise the overnight deposit rate, overnight lending rate, and the rate of the main operation by 600 basis points, reaching 27.25 percent, 28.25%, and 27.75 percent, respectively. Additionally, the discount rate was raised by 600 basis points to 27.75 percent.