Egypt’s net foreign assets (NFAs) fell by $1.5 billion in April, central bank data showed on Wednesday, retreating from March, when the approval of the fourth review of the country’s IMF program sparked a jump.
NFAs slid to the equivalent of $13.54 billion, from $15.08 billion at the end of March, according to Reuters calculations based on official central bank currency exchange rates.
In March, NFAs jumped by $4.9 billion after the International Monetary Fund approved the disbursement to Egypt of $1.2 billion after completing its review of the country’s $8 billion economic reform program, Reuters reported.
The IMF also approved a request for a $1.3 billion arrangement under the IMF’s resilience and sustainability facility.
The approvals led to an inflow of foreign investment in Egyptian pound treasury bills, bankers said.
Egypt had been using foreign assets, which include assets held by both the central bank and commercial banks, to help prop up its currency since as long ago as September 2021. Net foreign assets turned negative in February 2022 and only returned to positive territory in May last year.
Foreign assets increased in April at both the central bank and commercial banks, while foreign liabilities fell at both as well.
