Egypt’s banking sector, encompassing both the Central Bank of Egypt (CBE) and commercial banks, has experienced a dramatic recovery in net foreign assets (NFA) over the past year. The sector’s NFA surged from a record low of negative $29bn in January 2024 to a positive $8.7bn in January 2025, marking an impressive $37.8bn turnaround.
The CBE played a major role in this recovery, contributing $23.5bn of the total increase, while commercial banks saw their NFA improve by $14.3bn during the same period.
On a monthly basis, the sector’s NFA rose from $5.2bn in December 2024 to $8.7bn in January 2025, reflecting a $3.5bn increase—the highest monthly jump since May 2024. At the CBE level, net foreign assets edged up from $11.7bn in December 2024 to $12.0bn in January 2025, a $0.4bn gain. Meanwhile, commercial banks significantly reduced their NFA deficit, improving from negative $6.4bn in December 2024 to negative $3.3bn in January 2025, a $3.1bn improvement.
The sharp recovery in commercial banks’ net foreign assets was primarily driven by a $4bn rise in foreign assets, fueled by higher foreign currency inflows, including remittances from Egyptians abroad and increased foreign investments in Egyptian government debt instruments. Additionally, a $1bn decline in external liabilities further bolstered the sector’s positive shift, reinforcing confidence in Egypt’s financial stability.
