Egypt’s foreign assets scale new heights
Egypt’s financial position has been showing robust strengthening since the currency float in March 2024. The Egyptian banking system’s net foreign assets (NFAs) recorded a marked increase by the end of November 2025, reaching a historic record of $23.732 billion. This represents a monthly growth rate of five per cent, with an injection of $1.076 billion over the October figures, according to data from the Central Bank of Egypt (CBE).
This upward trajectory underscores a pivotal shift in Egypt’s macroeconomic stability. NFAs—calculated as the sum of foreign assets held by the central bank and commercial lenders minus their foreign liabilities—serve as a critical barometer of a country’s ability to weather external shocks and manage currency liquidity.
Strong performance
The growth was driven by a dual surplus across the banking sector. Commercial banks saw their foreign asset surplus rise by nine per cent for the third consecutive month, closing November at $11.85 billion. Simultaneously, the CBE’s own surplus continued its six-month winning streak, edging up one per cent to reach $11.88 billion.
Total foreign assets across the entire banking system reached LE4.421 trillion by late November. Conversely, foreign liabilities saw a marginal contraction, sliding from LE3.295 trillion in October to LE3.290 trillion in November. This narrowing of the liability gap has been a consistent trend since the historic turning point in May 2024, when the NFA position returned to a surplus for the first time in over two years.
Financial recovery
The recovery follows a period of extreme volatility. In January 2024, the sector grappled with a deficit of $17.6 billion. However, the CBE’s decision to float the pound on March 6, 2024, catalysed a surge in foreign currency inflows and balanced monetary policies.
The impact on the wider economy has been profound. A primary driver of this recovery is the manufacturing sector, which has rebounded powerfully following the alleviation of the foreign exchange shortages that plagued the industry before 2024. With increased access to hard currency, industrial production has resumed its role as a cornerstone of national GDP.
Positive macroeconomic outlook
International financial institutions have taken note of Egypt’s fiscal discipline. The International Monetary Fund (IMF), Morgan Stanley, and the World Bank have all issued optimistic forecasts. Morgan Stanley recently revised its growth projection for the 2024/25 fiscal year upwards to 4.8 per cent.
This sustained growth in NFAs reflects not only a healthier banking sector but also a broader restoration of investor confidence in the Egyptian economy’s long-term trajectory.
Egypt’s economic recovery has accelerated sharply in the opening quarter of the 2025/2026 fiscal year, with GDP expanding by 5.3 per cent. This performance, the strongest in over two years, marks a significant leap from the 3.5 per cent growth recorded during the same period last year and signals the tangible success of the government’s structural reform programme.
With over 60 structural reforms implemented since July 2024—including the removal of tax exemptions for state entities—Egypt is pivoting toward a more competitive, export-oriented economy. Analysts suggest that if this trajectory holds, full-year growth could comfortably exceed the five per cent mark.
