This decline during the past five months is considered the largest in the history of external debt ever, the source added.
Egypt's external debt declined to record $153.86 billion at the end of May 2024, compared to $168.03 billion at the end of December 2023, a decrease of $14.17 billion, a rate estimated at 8.43%, an official source at the Central Bank of Egypt (CBE) revealed.
This decline during the past five months is considered the largest in the history of external debt ever, the source added.
Egypt’s Net foreign reserves hit an all-time high of $46.38 billion in June 2024, an increase of $13.26 billion since August 2022.
The source added that the current reserve balances can cover about 7.9 months of the value of the country’s merchandise imports.
Additionally, the foreign exchange flows to the local market witnessed an increase of about 200%, including an increase of more than 100% in remittances from Egyptians abroad compared to their levels before unifying the exchange rate.
The rise in currency flows contributed to eliminating the foreign assets deficit of the CBE, recording a surplus of $10.3 billion in June 2024, compared to a deficit of $11.4 billion in January 2024.
The net foreign assets of banks also improved to record $4.6 billion in May 2024, compared to negative $17.6 billion in the same month last year.
According to the source, the Egyptian market has experienced a notable decrease in inflation rates since August 2022 as a result of successful monetary policy decisions.
This downward trend continued, and by June 2024, the inflation rate had significantly slowed down to 27.5%, marking the lowest rate since February 2023.
The yield on Egypt's dollar bonds for January 2027 declined from 22.86% in October 2023 to the level of 9.2% in June 2024, a decrease of about 13%.
