Central bank data showed that Egypt’s net foreign assets (NFA) resumed a near year-long decline that had paused in July. Specifically, Egypt’s NFA fell by Eยฃ18.06bn (US$925m) in August to Eยฃ-385.9bn from Eยฃ-367.8bn a month earlier.
Note that the Central Bank of Egypt relies on NFAs, which represent banking system assets owed by non-residents minus liabilities to help support the currency. However, Russia’s invasion of Ukraine, which sparked investor unease, has in part triggered an outflow of funds.
