Egypt’s net foreign assets (NFA) climbed to an unprecedented $29.54 billion in January, marking a $4.02 billion increase from the previous month, according to data released by the Central Bank of Egypt (CBE). This milestone reflects the ongoing influx of Gulf investments, the lingering benefits of a 2024 currency devaluation, and a robust rise in worker remittances, signalling a strengthening in the country’s external financial position.
The NFA, which encompasses foreign assets held by both the CBE and commercial banks minus their liabilities, has shown remarkable recovery since turning positive in May 2024. This follows a period of negativity that began in February 2022, when the central bank depleted reserves to defend the Egyptian pound against the U.S. dollar amid global economic pressures. The sharp devaluation in March 2024, part of an IMF-backed economic reform program, played a pivotal role in attracting foreign inflows and stabilising the currency.
Breaking down the January figures, commercial banks’ foreign assets rose by approximately $1.67 billion, while the CBE’s assets remained largely stable. Concurrently, net foreign liabilities declined across both the central bank and commercial sectors, contributing to the overall gain.
In local currency terms, the banking sector’s NFA reached EGP 1.385 trillion, up from EGP 1.216 trillion in December 2025, with total foreign assets hitting EGP 4.692 trillion and liabilities dropping to EGP 3.306 trillion.
A key driver of this uptick has been the surge in remittances from Egyptians working abroad, which hit a record $4.0 billion in December 2025 alone. For the full year of 2025, remittances totalled $41.5 billion, a significant jump from $29.6 billion in 2024, bolstered by improved economic conditions in host countries and Egypt’s efforts to channel funds through official banking systems.
Complementing these inflows are substantial investments from Gulf states, including the United Arab Emirates and Saudi Arabia, which have pledged billions in support as part of broader regional economic ties. These funds have been directed toward infrastructure projects, real estate, and energy sectors, helping to ease Egypt’s chronic foreign currency shortages.
On a related note, Egypt’s net international reserves (NIR), which focus solely on the CBE’s holdings, also reached a historic high of $52.59 billion in January, up from $51.45 billion in December 2025. This level provides coverage for about 6.9 months of commodity imports, exceeding international benchmarks and underscoring enhanced confidence in the economy. The CBE’s own NFA component stood at $15.1 billion, the highest since September 2021.
Egypt’s economic turnaround is closely tied to its $8 billion IMF loan agreement, expanded in 2024, which mandated fiscal discipline, monetary policy adjustments, and privatisation efforts. These reforms have helped curb inflation, reduce public debt, and attract foreign direct investment, though challenges persist, including vulnerability to global oil price fluctuations that could impact Gulf funding.
Analysts view the NFA surge as a positive indicator for currency stability and import coverage, potentially paving the way for further credit rating upgrades. However, sustained growth will depend on continued implementation of reforms and diversification of revenue sources beyond remittances and Gulf aid.
The Egyptian government has emphasised these developments as evidence of its balanced fiscal policies, with the Media Centre of the Egyptian Cabinet highlighting the reserves’ role in boosting external sector indicators and overall financial stability. As the world’s most populous Arab nation navigates post-pandemic recovery and regional geopolitical tensions, this financial buffer could prove crucial in maintaining momentum.
