Foreign currency deposits in Egyptian banks have reached about $50 billion and are safe, according to a statement issued by the Federation of Egyptian Banks (FEB).
Foreign deposits are invested in a group of projects in Egypt and they are safe from any risk, the FEB noted, affirming that Egyptian banks are fully committed to disbursing foreign currency deposits in their respective currencies.
The federation dismissed reports of restricting remittances sent by Egyptian expats or imposing limits for sending them in local currency.
Egypt’s remittances, the top source of foreign currency, dropped to $28.3 billion in 2022, a 10 percent decline from $31.5 billion in 2021, according to a report by the World Bank.
The country’s net foreign assets (NFAs) deficit increased to $24.42 billion in March 2023, compared to $22.76 billion in February. NFAs are the sum of foreign assets held by monetary authorities and deposit money banks.
Earlier this week, Prime Minister Mostafa Madbouy announced Egypt targets $191 billion in US dollar revenues in 2026, up from the current figure of $70 billion.
Egypt aims to collect $83 billion in foreign currencies during FY 2023/24 through remittances, non-oil merchandise exports, foreign direct investments (FDIs), and revenue generated by the Suez Canal.
The IMF is currently reviewing Egypt’s economic situation to disburse the second tranche of a $3 billion loan approved in December 2022.
