Egypt's net foreign assets jump in March after IMF review approval
Egypt's net foreign assets jumped by $4.9 billion in March, central bank data showed, apparently boosted by the approval of the fourth review of the country's IMF programme.
Net foreign assets climbed to the equivalent of $15.08 billion from $10.18 billion at the end of February, according to Reuters calculations based on official central bank currency exchange rates.
The International Monetary Fund in early March approved the disbursement to Egypt of $1.2 billion after completing its review of the country's $8 billion economic reform programme. It also approved a request for a $1.3 billion arrangement under the IMF's resilience and sustainability facility.
Foreign investors were significant purchasers of Egyptian pound treasury bills after the approval and as one-year bills acquired after the March 2024 IMF agreement matured, two bankers said.
Egypt had been using foreign assets, which include assets held by both the central bank and commercial banks, to help prop up its currency since as long ago as September 2021. Net foreign assets turned negative in February 2022 and only returned to positive territory in May last year.
Foreign assets increased in February at both the central bank and commercial banks, while foreign liabilities rose at the central bank but declined at commercial banks.
(Reporting by Patrick Werr Editing by Gareth Jones)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Today
a day ago
- Gulf Today
Gold prices hold steady, platinum hits 10-year high
Gold prices held steady as investors kept an eye on the conflict between Israel and Iran, while platinum scaled its highest level since September 2014 on speculative buying. Spot gold was steady at $3,369.79 an ounce at 0955 GMT. US gold futures fell 0.6 per cent to $3,387.30. 'We're not expecting that gold prices will fall back to 3,000 because there are a lot of uncertainties,' said ANZ Commodity Strategist Soni Kumari, pointing to whether the US decides to become directly involved in the conflict. Iranian missiles struck an Israeli hospital on Thursday while Israel hit targets across Iran as President Donald Trump kept the world guessing about whether the US would join Israel in air strikes seeking to destroy Tehran's nuclear facilities. Meanwhile, the Fed held interest rates steady on Wednesday and policymakers still forecast cutting rates by half-a-percentage point this year, but slowed their overall outlook for rate cuts in response to a more challenging economic outlook. However, Fed Chair Jerome Powell cautioned against putting too much weight on this outlook, warning of 'meaningful' inflation ahead as higher import tariffs loom. Gold is considered a safe-haven asset during times of geopolitical and economic uncertainty. It also tends to thrive in a low-interest rate environment. In other metals, platinum lost 2.5% to $1,288.67, but hit its highest level since September 2014 earlier in the session. Reuters
Arabian Post
a day ago
- Arabian Post
OPEC+ Emerges as Pillar of Oil Market Stability
Saudi Energy Minister Prince Abdulaziz bin Salman told delegates at the St Petersburg Economic Forum on 19 June that OPEC+ has evolved into a 'key guarantor' of global oil prices and market stability. The alliance's capacity to respond to evolving economic and geopolitical realities distinguishes it as an effective and trustworthy instrument for safeguarding the sector. At the forum, Prince Abdulaziz emphasised that OPEC+ adapts proactively to prevailing conditions. He was clear that any action by Riyadh or Moscow to offset potential disruptions in Iranian oil exports will be guided strictly by actual developments. 'We only react to realities,' he stated, declining to engage in hypotheticals—a stance aligned with OPEC+'s collective decision-making framework. Analysts say his comments come amid a sharp surge in crude prices, driven by escalating tensions following an Israeli assault on Iranian nuclear infrastructure. According to Reuters, Brent crude has climbed more than $10 per barrel in just one week, inflating the geopolitical risk premium. Despite this volatility, there has been no significant disruption to Middle Eastern oil exports to date. ADVERTISEMENT Prince Abdulaziz underscored the cohesive nature of OPEC+, which comprises 22 member countries. He affirmed that decisions are taken collectively rather than unilaterally by dominant players, a principle reaffirmed by his preference to 'react to realities' rather than speculation. The alliance's next meeting is scheduled for 6 July, when eight core producers—including Saudi Arabia, Russia, the UAE, Iraq, Kuwait, Oman, Algeria and Kazakhstan—will discuss production levels for August and beyond. Global demand forecasts also featured prominently in forum discussions. OPEC Secretary General Haitham Al Ghais noted increasing consumption in developing economies, especially during the northern hemisphere summer, reinforcing the need for calibrated production policies. Meanwhile, Kirill Dmitriev, head of Russia's RDIF, suggested that Russia, Saudi Arabia and the United States might reprise their 2020-era role in stabilising oil markets, citing historical precedents from the pandemic response. Despite the ability to moderate price swings, the alliance faces internal tensions. In May, Saudi Arabia and Russia spearheaded a 411,000 barrels‑per‑day production increase, despite earlier preferences among some members for a pause. Leaks from the meeting revealed discontent with non-compliant producers, prompting Riyadh to push through the increase to protect its market interests. Analysts suggest this indicates a strategic pivot: reclaiming market share over propping up prices alone. Meanwhile, geopolitical variables are influencing OPEC+ strategy. Rising tensions in the Strait of Hormuz, following conflict between Israel and Iran, have elevated concerns of supply disruption. However, as of mid‑June, the vital maritime route continues to operate without incident. The U.S. is reportedly weighing deeper engagement in the region, a development that could further complicate supply dynamics and pricing. The energy minister also highlighted collaboration beyond output quotas. Saudi Arabia and Russia are advancing joint efforts to create investor-friendly environments through joint ventures in energy and related sectors. Prince Abdulaziz confirmed plans for Russian Deputy Prime Minister Alexander Novak to visit Riyadh later this year, accompanied by a large business delegation. He said the initiative aims to 'deepen bilateral economic ties and foster diversified investment opportunities,' affirming both countries' commitment to mutual investment facilitation. These comments reinforce the perception of OPEC+ as a stabilising force comparable to a central bank's role in financial markets. Prince Abdulaziz described the alliance as 'the central bank and regulator of the global oil market,' emphasising its flexibility and responsiveness to global economic shifts. He further noted the Kingdom's support for Russia amid external pressures, affirming Riyadh's diplomatic solidarity. Looking ahead, OPEC+ is poised to navigate the balance between maintaining price stability and managing production share. The upcoming 6 July meeting will be pivotal in determining whether the group confirms further increases or holds current output steady amid signal mixed signals from demand forecasts and geopolitical uncertainty.
Al Etihad
a day ago
- Al Etihad
Hong Kong stocks set for biggest weekly loss since April on trade, Mideast jitters
20 June 2025 09:22 SHANGHAI (REUTERS)Hong Kong stocks rebounded on Friday after three sessions of losses but remained on track for their biggest weekly loss since April, as Sino-US trade talks and Middle East tensions weighed on investor sentiment. Mainland China shares edged blue-chip CSI300 Index climbed 0.2% by the lunch break while the Shanghai Composite Index gained 0.1%. Hong Kong benchmark Hang Seng was up 1.2%.China kept its benchmark lending rates unchanged, after rolling out sweeping monetary easing measures last month to support the uncertainties related to China-US trade friction, onshore share valuations may be range-bound at low levels near term, said UBS strategist Lei Meng in a note."We expect limited downside, and potential upside catalysts mainly from stronger policy easing, the continual entry of medium or long-term funds and structural reforms," Meng and Iran's conflict entered a second week and fears of a potential US attack on Iran hung over markets in Asia, impacting overall risk sentiment. The Hang Seng Index was down 1.6% this week, on track for the largest decline since April 7, if losses hold. The CSI300 Index was down 0.3%. Stock Markets Continue full coverage
