Egyptian banking sector records $13.25bn NFA surplus in July, marking continued growth

The Central Bank of Egypt (CBE) announced that the net foreign assets (NFA) of the Egyptian banking sector achieved a surplus of $13.25bn (EGP 644.764bn) in July 2024. This marks an increase from the previous month’s surplus of $13.02bn (EGP 626.6bn) in June.

The NFA indicator reflects the difference between the foreign assets held by the banking sector, including the Central Bank, and the liabilities owed to non-residents. Changes in this indicator represent the net transactions of the banking sector with the global market over a specific period.

In May, the NFA recorded a surplus of EGP 676.4bn, reversing a deficit of EGP 174.385bn in April. This was the first surplus since January 2022, when the NFA achieved a surplus of EGP 9.674bn.

As of July, the total foreign assets of the banking sector (including both the central bank and commercial banks) amounted to EGP 3.687trn, up from EGP 3.634trn in June. Meanwhile, total liabilities reached EGP 3.042trn, compared to EGP 3.008trn in the previous month.

In a related development, the CBE reported that liquidity in the Egyptian banking sector rose to EGP 10.783trn in July, up from EGP 8.877trn in December 2023.