CBE reports uptick in foreign assets and reserves in mid-2025, NFAs hit $10.49B in July

Cairo – August 21, 2025: Egypt’s external financial indicators continued to show positive momentum in mid-2025, with official data pointing to further gains in foreign currency holdings. Figures released by the Central Bank of Egypt (CBE) indicate that net foreign assets (NFA) rose in July to $10.491 billion, equivalent to LE 511.211 billion. This marks an improvement from June’s level of $10.1 billion (LE 499.628 billion), underscoring growing strength in the country’s external position.

In addition to the rise in NFA, the country’s net international reserves also saw a slight uptick. By the close of June 2025, reserves stood at $48.7 billion, up from $48.5 billion in the previous month, suggesting continued resilience in Egypt’s foreign currency buffers amid ongoing macroeconomic recovery.

The continued growth in reserves has been underpinned by improved tourism receipts, higher Suez Canal revenues, rising exports, and renewed investor confidence following agreements with the International Monetary Fund and regional development partners.

The broader banking sector has also shown signs of recovery. Commercial banks contributed significantly to the overall improvement in foreign asset positions, with their net foreign assets reaching $4.8 billion by May—their highest level since early 2021. In total, the sector added over $3.5 billion in net foreign assets between December 2024 and January 2025 alone, underscoring the impact of financial reforms and external financing agreements.

The CBE reported that reserve money grew to LE 2.516 trillion in July, up from LE 2.320 trillion in June.

Currency in circulation outside the central bank’s vaults reached LE 1.516 trillion, a slight increase from the previous month. Meanwhile, local currency deposits held by banks at the CBE rose sharply to LE 999.95 billion, compared with LE 813.82 billion in June.

The improvement in July builds on a broader turnaround that began in early 2024, following a period of intense financial pressure. Prior to major economic reforms, Egypt faced a severe NFA deficit that had ballooned to nearly $29 billion by January 2024.

However, after the fourth wave of currency liberalization in March 2024 and the influx of foreign capital linked to the Ras El Hekma development agreement, Egypt’s banking sector began a sharp recovery.

By May 2024, the consolidated NFA position of Egyptian banks, including the central bank, had moved into a surplus of $14.29 billion, reversing more than two years of negative balances.

Several factors have supported this reversal, most notably a surge in foreign currency inflows across multiple channels. According to official data, remittances from Egyptians working abroad jumped by nearly 70 percent year-on-year, reaching $32.8 billion between July 2024 and May 2025.