May 19, 2022

Dubai Week

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Net foreign assets in Egypt have plummeted since the beginning of the Corona crisis  political news

Net foreign assets in Egypt have plummeted since the beginning of the Corona crisis political news

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Yesterday, Sunday, net foreign assets fell by 169.7 billion Egyptian pounds ($ 9.17 billion) in March, the biggest drop since the outbreak of the corona virus crisis in February 2020.

Egypt’s central bank said foreign reserves had risen slightly in April, after suffering a setback of nearly $ 4 billion in March after being hit by the effects of the Ukrainian crisis.

The influx of foreign currency from the country – partly triggered by investor concerns following Russia’s invasion of Ukraine – was one of the factors that prompted the central bank to devalue the pound by 14% on March 21.

Net foreign assets fell to a negative 221.3 billion pounds (dollar = 18.5 Egyptian pounds) at the end of March, down from a negative 51.69 billion in the previous month, to six consecutive months from 186.3 billion at the end of September 2021.

Egypt’s reserves returned to growth after May 2020, after falling in the first two months after the outbreak of the corona epidemic.

According to the central bank, net foreign assets represent the assets of the banking sector due to the deduction of debts by non-residents, and their change in size refers to the net transactions of the banking system with the foreign sector of the banking system, including the central bank. .

On March 30, the Saudi Press Agency (SPA) announced that the Kingdom had deposited $ 5 billion in Egypt’s central bank.

Analysts say the change in net foreign assets reflects changes in export or import flows, outsourcing of foreign portfolios, changes in foreign credit, remittances from overseas employees, or a recession in tourism.

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