Foreign holdings of Egyptian treasury bonds declined in March and April

Data from the Central Bank of Egypt showed that foreign holdings of Egyptian treasury bonds declined in March and April, with a total value of $ 7.2 billion.

The data also showed that net external assets declined by $ 3.5 billion in May.

The Federal Reserve hikes that began in March and the Russian invasion of Ukraine have complicated Egypt’s efforts to attract domestic and foreign loans to fill its current account and budget deficits.

Foreign holdings of Egyptian treasury bonds fell to 180.5 billion Egyptian pounds (9.62 billion dollars) at the end of April from 315.9 billion at the end of February, the latest date for which data were available. Foreign funds amounted to 187.216 billion at the end of March.

Net external assets fell in May to minus 305.1 billion pounds, the eighth consecutive month of decline.

Net foreign assets represent the banking system’s assets vis-à-vis non-residents minus liabilities. According to the Central Bank, the change in the volume of net foreign assets reflects the banking system’s net transactions with the foreign sector, including those of the Central Bank.

Analysts said any move could represent a change in the flow of imports or exports, the exit of foreign wallets, the repayment of external debt, changes in the flow of workers’ remittances, or a slowdown in tourism.

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