Egypt Currency Squeeze Sinks Bank Foreign Buffers to New Low
- Egypt’s net foreign assets fell into record deficit in June
- Pound under pressure as economy suffers from lack of inflows
A customer hands over Egyptian pound banknotes for a purchase in Giza, Egypt.
Photographer: Islam Safwat/BloombergThis article is for subscribers only.
Net foreign assets held by Egypt’s commercial banks went into a record deficit in June, as a lack inflows drives a deterioration in the finances of a country already struggling with its worst hard-currency shortage in years.
The gap among lenders reached $17.1 billion, compared with $14.5 billion in May, according to data released by the central bank. The shortfall opened up as a result of a $1.7 billion drop in banks’ assets and an around $950 million increase in their liabilities.