Egypt's Net Foreign Asset Deficit Shrinks to 2-year Low

The deficit in net foreign assets decreased to EGP 65.38 billion ($1.39 billion) at the end of March from EGP 270.65 billion in the previous month and EGP 352.49 billion at the end of January.

Egypt obtained $5 billion in late February and another $5 billion in early March from giving rights to develop the Ras El Hekma project on the Mediterranean coast to Abu Dhabi, as part of a deal that will eventually reach $35 billion.

On March 6, Egypt allowed its currency to decline as part of an $8 billion support package from the International Monetary Fund (IMF). The pound is now trading at about EGP 48.5 to the dollar after remaining stable at EGP 30.85 for about a year.