The Central Bank of Egypt (CBE) said net foreign assets (NFA) of the banking sector declined by around 7.1% in February 2026 to $27.39bn, down from $29.51bn in January, reflecting pressures linked to commercial banks financing a partial exit of foreign investors from local debt instruments amid the fallout from the Iran war.
In a recent report, the central bank attributed the decline primarily to a contraction in commercial banks’ net foreign assets, falling for the first time in five months, by around 19% to $11.75bn. In contrast, the CBE’s own net foreign assets rose by approximately 4% to $15.63bn, marking a ninth consecutive monthly increase.
Net foreign assets represent banks’ holdings of foreign currency assets, including deposits and savings, minus their external liabilities, and serve as a key buffer that can be mobilised to meet external obligations when needed.
Local liquidity
In a separate development, the CBE said local liquidity in the banking sector rose to EGP 14.286trn in February, compared to EGP 14.027trn in December 2025, an increase of about EGP 259.2bn.
According to CBE data, the money supply increased to EGP 4.002trn in February from EGP 3.796trn in December, while currency in circulation outside the banking system rose to EGP 1.496trn from EGP 1.443trn.
Non-government deposits
The CBE also reported growth in total non-government local currency deposits, which rose to EGP 9.764trn in February 2026, up from EGP 9.580trn in December 2025.
Demand deposits in local currency increased to EGP 2.505trn from EGP 2.352trn. Of these, the public business sector accounted for EGP 100.354bn, the private sector EGP 1.316trn, and the household sector EGP 1.089trn.
Meanwhile, time deposits and savings certificates in local currency edged up to EGP 7.258trn in February, compared to EGP 7.228trn in December. The public business sector held EGP 65.735bn, the private sector EGP 392.730bn, and the household sector EGP 6.800trn.
Foreign currency deposits
Foreign currency deposits at banks rose to the equivalent of EGP 3.026trn in February 2026, compared to EGP 3.003trn in December 2025.
Demand deposits in foreign currency increased to EGP 748.043bn from EGP 738.9bn. The public business sector accounted for EGP 38.546bn, the private sector approximately EGP 500.705bn, and the household sector EGP 208.812bn.
Time deposits and savings certificates in foreign currency reached the equivalent of EGP 2.278trn, up from EGP 2.264trn in December. Of these, the public business sector held EGP 159.522bn, the private sector EGP 505.359bn, while the household sector accounted for EGP 1.613trn.
