Egypt’s net foreign assets (NFAs) fell by 18.06 billion Egyptian pounds ($925 million) in August, resuming a near year-long decline that had paused the month before, central bank data showed.
The central bank has been relying on NFAs, which represent banking system assets owed by non-residents minus liabilities, to help support the currency. They include foreign assets held by the central bank.
NFAs fell to a negative 385.9 billion pounds at the end of August from a negative 367.8 billion pounds a month earlier. In July they rose by 2.27 billion pounds after nine months of decline.
In September 2021, before the decline began, NFAs stood at a positive 248 billion pounds. Russia’s invasion of Ukraine in February sparked further investor unease, unleashing an even bigger flood of outflows.
Changes in the amount of NFAs represent net transactions of the banking system with the foreign sector, including those of the central bank, according to the bank.
