{"id":626365,"date":"2024-07-01T00:00:00","date_gmt":"2024-07-01T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/07\/01\/net-foreign-assets-record-their-first-surplus-in-over-two-years\/"},"modified":"2024-07-01T00:00:00","modified_gmt":"2024-07-01T00:00:00","slug":"net-foreign-assets-record-their-first-surplus-in-over-two-years","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/07\/01\/net-foreign-assets-record-their-first-surplus-in-over-two-years\/","title":{"rendered":"Net foreign assets record their first surplus in over two years"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>Egypt\u2019s net foreign assets recorded their first surplus in over two years<\/strong>, as the <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/4461a6ec-f67a-45d9-b396-b6b1f6533a35\/second-usd-20-bn-tranche-of%253cmark%253e-ras-el-hekma%253c%2Fmark%253e-funds-land-in-state-coffers\" style=\"\" rel=\"noopener\">second and<\/a><a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/4461a6ec-f67a-45d9-b396-b6b1f6533a35\/second-usd-20-bn-tranche-of%253cmark%253e-ras-el-hekma%253c%2Fmark%253e-funds-land-in-state-coffers\" style=\"\" rel=\"noopener\">final tranche<\/a> of the USD 35 bn Ras El Hekma agreement brought in some USD 14 bn of fresh inflows \u2014 USD 6 bn of which the central bank poured into the nation\u2019s banking sector. Egypt recorded a net foreign asset surplus of just under USD 14.3 bn at the end of May, up from a deficit of USD 3.7 bn in April, according to Enterprise calculations based on <a target=\"_blank\" href=\"https:\/\/ent.news\/2024\/6\/1860.jpg\" style=\"\" rel=\"noopener\">Central Bank of Egypt figures<\/a>. <strong>This is the first time Egypt\u2019s net foreign assets have been in the green since February 2022<\/strong>, when the war in Ukraine triggered <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/158188ff-65a9-4146-adc1-5f53c1a3f6e5\" style=\"\" rel=\"noopener\">capital outflows<\/a> of almost USD 20 bn.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The central bank\u2019s net foreign asset position once again drove the trend:<\/strong> The Central Bank of Egypt saw its net foreign assets record a surplus of USD 9.7 bn, up from a deficit of USD 763 mn in <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/ea24f652-8aba-438a-a9e2-e0fc1ce09e91\/egypt%25e2%2580%2599s%253cmark%253e-net%253c%2Fmark%253e%253cmark%253e-foreign%253c%2Fmark%253e-asset-deficit-continues-to-narrow-in-april-for-third-consecutive-month\" style=\"\" rel=\"noopener\">April<\/a>. Foreign assets in the central bank rose USD 4.8 bn, while foreign liabilities were down by USD 5.6 bn.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Commercial banks also left deficit territory: <\/strong>Commercial banks saw their net foreign assets record a surplus of USD 4.6 bn in May, from a deficit of USD 2.9 bn in April. Commercial banks saw their foreign assets rise by USD 6.9 bn, while foreign liabilities were down USD 625 mn during the same period.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Data point: <\/strong>\u201cNet foreign assets of Egypt\u2019s banking system have improved by a staggering USD 43 bn since January. International support likely played a role, especially the USD 35-bn mega investment from the UAE. But the scale also suggests portfolio inflows are back,\u201d Bloomberg Chief Emerging-Markets Economist <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-06-27\/egypt-bank-foreign-buffers-swing-to-surplus-in-first-since-2022?embedded-checkout=true\" style=\"\" rel=\"noopener\">Ziad Daoud said<\/a>.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Remember: <\/strong>Egypt\u2019s net foreign liabilities hit an all-time high back in January, recording <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/428b4720-c846-42b6-8058-e26c9aaff040\/net-foreign-liabilities-hit-record-high-in-january-for-second-consecutive-month\" style=\"\" rel=\"noopener\">USD<\/a><a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/428b4720-c846-42b6-8058-e26c9aaff040\/net-foreign-liabilities-hit-record-high-in-january-for-second-consecutive-month\" style=\"\" rel=\"noopener\"><\/a><a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/428b4720-c846-42b6-8058-e26c9aaff040\/net-foreign-liabilities-hit-record-high-in-january-for-second-consecutive-month\" style=\"\" rel=\"noopener\">29.0 bn<\/a>, before starting to gradually drop in the months that followed following the Ras El Hekma agreement, float of the EGP, and the flood of inflows that followed. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Egypt\u2019s net foreign asset position turned to a surplus on the back of FX inflows from the Ras El Hekma agreement<\/p>\n","protected":false},"author":1,"featured_media":626366,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7350],"tags":[204,271,72,2234],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-626365","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-banking","tag-central-bank-of-egypt","tag-enterpriseam","tag-foreign-exchange","wpautop","entry"],"acf":{"mongo_id":"05dbfb21-5b24-459c-8961-cd7efb29461b","order":"6","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/7\/4.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Egypt\u2019s net foreign assets record their first surplus in over two years","related_issue":[626355],"teaser":"Egypt\u2019s net foreign asset position turned to a surplus on the back of FX inflows from the Ras El Hekma agreement","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/7\/.3b10ab71-317a-4dc5-9bb5-07490ef71d8a.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Net foreign assets record their first surplus in over two years - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2024\/07\/01\/net-foreign-assets-record-their-first-surplus-in-over-two-years\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta 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