Egypt's net foreign assets continued their upward trend in July, reflecting sustained improvement in the country’s external financial position. According to the Central Bank of Egypt (CBE), net foreign assets (NFA) rose to $10.491 billion (EGP 511.211 billion) in July, up from $10.1 billion (EGP 499.628 billion) recorded in June.

Net international reserves climbed to $48.7 billion by the end of June 2025, marking a modest increase from $48.5 billion in May.

The continued growth in reserves has been underpinned by improved tourism receipts, higher Suez Canal revenues, rising exports, and renewed investor confidence following agreements with the International Monetary Fund and regional development partners.

The broader banking sector has also shown signs of recovery. Commercial banks contributed significantly to the overall improvement in foreign asset positions, with their net foreign assets reaching $4.8 billion by May—their highest level since early 2021. In total, the sector added over $3.5 billion in net foreign assets between December 2024 and January 2025 alone, underscoring the impact of financial reforms and external financing agreements.

The CBE reported that reserve money grew to EGP 2.516 trillion in July, up from EGP 2.320 trillion in June.

Currency in circulation outside the central bank’s vaults reached EGP 1.516 trillion, a slight increase from the previous month. Meanwhile, local currency deposits held by banks at the CBE rose sharply to EGP 999.95 billion, compared with EGP 813.82 billion in June.

The improvement in July builds on a broader turnaround that began in early 2024, following a period of intense financial pressure. Prior to major economic reforms, Egypt faced a severe NFA deficit that had ballooned to nearly $29 billion by January 2024.

However, after the fourth wave of currency liberalization in March 2024 and the influx of foreign capital linked to the Ras El Hekma development agreement, Egypt’s banking sector began a sharp recovery.

By May 2024, the consolidated NFA position of Egyptian banks, including the central bank, had moved into a surplus of $14.29 billion, reversing more than two years of negative balances.

Several factors have supported this reversal, most notably a surge in foreign currency inflows across multiple channels. According to official data, remittances from Egyptians working abroad jumped by nearly 70% year-on-year, reaching $32.8 billion between July 2024 and May 2025.