Central Bank of Egypt data showed that foreign holdings of Egyptian treasury bills declined in March and April, with a total value of $7.2 billion.
The data also showed that net foreign assets fell in May by $3.5 billion.
Federal Reserve hikes that began in March and Russia’s invasion of Ukraine have complicated Egypt’s efforts to attract domestic and foreign borrowing to plug its current account and budget deficits.
Foreign holdings of Egyptian treasury bills fell to 180.5 billion Egyptian pounds ($9.62 billion) at the end of April from 315.9 billion at the end of February, the last date for which data was available. Foreign holdings amounted to 187.216 billion at the end of March.
Net foreign 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 owed by 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 that any move may represent a change in the flow of imports or exports, the exit of foreign portfolios, external debt repayments, changes in the flow of workers’ remittances, or a slowdown in tourism.