In a significant financial development, Egypt's net foreign assets (NFAs) surged by $4.9 billion in March 2025, elevating the total to $15.08 billion from February's $10.18 billion. This remarkable increase aligns with the International Monetary Fund's (IMF) approval of the fourth review of Egypt's $8 billion economic reform program, which facilitated a $1.2 billion disbursement and an additional $1.3 billion under the IMF's resilience and sustainability facility.

The IMF's endorsement bolstered investor confidence, leading to substantial foreign investment in Egyptian pound treasury bills, especially as one-year bills from the March 2024 IMF agreement matured. This influx of foreign capital contributed to the positive shift in Egypt's NFAs, which had turned negative in February 2022 but returned to positive territory by May 2024.

The growth in NFAs reflects combined increases in foreign assets at both the central and commercial banks. While the central bank's foreign liabilities rose, those at commercial banks declined, indicating a complex but overall positive financial movement.

This financial upswing coincides with Egypt's broader economic reforms, including a significant reduction in inflation and the approval of a $91 billion budget for the 2025/26 fiscal year, aiming for fiscal tightening and a primary surplus of 4% of GDP.

The IMF has emphasized the importance of continued structural reforms to ensure durable and inclusive growth, highlighting the need for effective domestic revenue mobilization, energy price adjustments, and accelerated divestment to strengthen fiscal sustainability.

Egypt's recent financial developments signal a positive trajectory, reflecting the country's commitment to economic reform and the restoration of investor confidence.