Egypt’s banking sector net foreign assets surged by 9.8% in August 2026, reaching $31.2 billion, the highest level since January 2020. This increase, reported by the Central Bank of Egypt (CBE), reflects the country’s ongoing efforts to bolster its foreign-currency reserves amid economic challenges.
The latest figures indicate a significant rise from July’s net foreign assets of $28.42 billion, marking an increase of approximately $2.78 billion within a month. The CBE’s data, published by Egypt’s State Information Service, shows that commercial banks contributed $12.4 billion, while the central bank accounted for $18.8 billion of the total.
Strengthening Foreign Assets
Commercial banks represented about 40% of the banking sector’s net foreign asset position in August, with their balances rising to $12.4 billion. The CBE’s share, at roughly 60%, underscores the positive trend extending beyond the central bank into the commercial banking sector. This distribution is crucial as it indicates a broader recovery in the banking system’s foreign-currency position.
In July, the banking system’s total foreign assets were valued at EGP 5.146 trillion, with liabilities at EGP 3.691 trillion, resulting in net foreign assets of EGP 1.454 trillion. The increase from July to August is part of a longer-term improvement, as the banking sector had previously recorded a net foreign asset position of $27.965 billion in June.
Reserves and Remittances on the Rise
In addition to the increase in net foreign assets, Egypt’s official foreign-exchange reserves also rose, reaching $57.2145 billion at the end of August, up from $56.2939 billion in July. This increase of approximately $920.6 million, or 1.6%, further strengthens the central bank’s buffer against external shocks, particularly amid ongoing regional geopolitical risks.
Remittances from Egyptians working abroad have emerged as a vital source of foreign currency, hitting a record $47.3 billion during the fiscal year 2025/26, a 29.6% increase from the previous year. This growth in remittances, alongside export receipts and foreign investment, plays a crucial role in supporting Egypt’s economy and banking system.
As Egypt continues to navigate economic pressures, the rise in net foreign assets and reserves signals a positive trajectory for the country’s financial stability. The CBE’s data reflects a resilient economy, with ongoing efforts to enhance foreign-currency buffers and improve the overall balance of payments.
According to Economy Middle East, the latest developments in Egypt’s banking sector highlight the importance of maintaining a positive foreign-currency position as the country works to stabilize its economy.
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