Net foreign assets rise for first time since US-Iran war began

Central Bank of Egypt data shows that net foreign assets (NFAs) in the banking sector rose by about $1.56 billion in April to reach $22.89 billion, compared to $21.33 billion at the end of March, marking the first monthly increase since the outbreak of war between the United States and Iran in late February.

NFAs had fallen by about $8 billion during February and March, dropping by $2.1 billion and $6.1 billion respectively. This sharp decline coincided with the immediate fallout of the war triggered by joint US-Israeli attacks on Iran, which prompted Iranian retaliatory strikes against Tel Aviv and US bases in the region.

The April turnaround was driven by a $1.94 billion increase in the NFAs of commercial banks, bringing their total to $7.7 billion. This growth resulted from a $3.2 billion rise in foreign assets to $42.6 billion, which offset a $1.3 billion increase in foreign liabilities to $34.9 billion.

Conversely, the Central Bank’s own net foreign assets declined by about $342 million during the same month to stand at $15.16 billion.

The Central Bank announced last month that net international reserves rose to $53.009 billion by the end of April, compared to $52.831 billion at the end of March, an increase of $169 million.