Data from the Central Bank of Egypt showed that the deficit shrank by 24.9 billion pounds in July.
Almost all of the improvement in July and August was due to the rise in net foreign assets held by commercial banks.
Withdrawals from net foreign assets, which are the assets of the Central Bank and commercial banks owed by non-residents less their liabilities, helped the Central Bank of Egypt to support the pound over the past two years.
Net foreign assets reached 248 billion pounds in September 2021.
Under the pressure on its financial resources, Egypt devalued its currency in March 2022 and followed this with several reductions after it had kept the exchange rate fixed against the dollar for a year and a half.
The International Monetary Fund said in December that Egypt was financing its current account deficit by drawing on net foreign assets.
#Egypts #net #foreign #asset #deficit #declined #August #month #row