Egypt’s net foreign assets remain to drop as currency crisis disturb economy
(MENAFN) Egypt’s net foreign assets dropped by 109.9 billion Egyptian pounds (USD4.47 billion) two months ago (October), prolonging a decrease that started in September last year, as by shown by the central bank figures.
The decline works out to nearly USD228 million after calculating for drop in value throughout the stated month, as reported by Reuters.
NFAs signify banking system possessions that are possessed by its non-citizens minus liabilities, as well as foreign assets detained by the central bank. Egypt has been depending on its NFAs to balance its currency dropping in value.
Egypt has been dealing with a currency disaster since the Russia's attack on Ukraine at the beginning of this year (February), driving the North African nation to start discussing with the International Monetary Fund for a fiscal assistance package.
Two months ago, the IMF accepted a 46-month, USD3 billion Extended Fund Facility with Egypt, showing eagerness to a move towards “durable exchange rate flexibility” as well as assurances to improving social protections, as reported by Reuters.
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