Net foreign assets in Egypt’s banking sector surged by 32% m-o-m in September, as foreigners continue to return to government treasuries after selling out of global emerging markets in the early weeks of the pandemic. Central bank data picked up by Al Mal shows assets rose to USD 14.03 bn at the end of the month, up from USD 10.65 bn in August — it’s highest monthly increase since February 2019. Net foreign assets dropped by as much as 45% on a monthly basis in March, prompted by investors pulling a record USD 83 bn from EMs during the month.

The surge in net foreign assets was driven primarily by foreign investors buying up EGP treasuries, Pharos head of research Radwa El Swaify told Enterprise. Foreign holdings of Egyptian debt more than doubled to USD 21.1 bn between May and mid-October, signaling increased appetite for risky EM assets and improving confidence in the Egyptian economy.