Central Bank of Egypt
The projection, outlined in the CBE’s Monetary Policy Report published on Monday, signals the end of a two-year period marked by economic stagnation.
This represents an increase of about 47.5 percent compared to $10.2 billion in February, according to the Central Bank of Egypt (CBE).
The credit and discount rate was also lowered by the same margin to 25.50 percent.
The growth in foreign assets was partially fueled by the successful $2 billion international bond sale on January 29, marking Egypt's first dollar-denominated bond issuance in four years.
The report also revealed that net returns for banks operating in the country totaled LE 915 billion by the end of 2024, up from LE 582.5 billion the previous year.
The rise in net foreign assets can largely be attributed to a reduced deficit in commercial banks, contributing significantly to the overall improvement.
The CBE's financial inclusion success has been bolstered by ongoing collaboration with key stakeholders, including government ministries, regulatory authorities, and the private sector.
The Monetary Policy Committee (MPC) of the Central Bank of Egypt noted that the decision reflects the CBE’s cautious approach as it balances domestic economic recovery with persistent inflation risks and global uncertainties.
With 75 percent of Egypt’s banking sector now aligning with sustainable finance principles, as confirmed by the CBE, the sector has set an industry standard for responsible financial practices.
According to the Central Bank of Egypt (CBE), Egypt’s annual urban headline inflation remained stable at 24 percent in January 2025
Despite the recent downturn, Egypt's NFA position is expected to improve in January 2025, thanks to a $2 billion international bond sale.
The primary driver of this shift was a sharp expansion in the current account deficit, which rose to $5.9 billion, compared to $2.8 billion in the first quarter of the prior year.
By the end of FY2023/2024 (July 2024), Egypt’s external debt stood at $152.9 billion, down from $168 billion in June 2023.
On a yearly basis, core inflation eased slightly to 23.2 percent in December 2024, from 23.7 percent in the previous month.
The CBE’s efforts to boost financial inclusion align with the bank’s 2022-2025 strategy, aiming to expand access to financial services across Egypt.
October 2024 alone saw an exceptional 68.4% surge in remittances, amounting to $2.9 billion, compared to $1.7 billion in October 2023. This remarkable growth highlights the impact of recent economic reforms on financial inflows.
This progress has been driven by collaborative efforts from state entities, the establishment of supportive regulatory frameworks, and the launch of tailored financial products designed to meet citizens’ diverse needs.
According to this data, the annual core inflation rate continued its downward trend for the third consecutive month.
The initial rollout includes partnerships with three major local banks: the National Bank of Egypt, Banque Misr, and the Commercial International Bank (CIB).
The foreign currency reserves are composed of major global currencies, including the US dollar, Euro, British pound, Japanese yen, and Chinese yuan, providing a diversified financial foundation.
