Saudi Press

Saudi Arabia and the world
Saturday, Jun 21, 2025

Egypt’s asset sales delay to strain currency further: Moody’s  

Egypt’s asset sales delay to strain currency further: Moody’s  

As Egypt’s asset sales have been slower than anticipated, the pressure on currency depreciation will continue due to a drawdown in foreign exchange liquidity, said Moody’s Investors Service in its latest note.
Egypt’s decline in foreign exchange liquidity carried on through January and February of 2023 after the nation reversed course at the end of last year. As a result, the country’s debt affordability and debt sustainability profile became more at risk.

Egypt’s “B3 stable” asset sale strategy, which aimed to close its funding gap mostly through selling state-owned assets, has progressed slower than expected, stated the global rating agency.

This strategy is crucial for the $3 billion 46-month International Monetary Fund extended arrangement that Egypt reached last December to enhance its foreign currency liquidity.

The IMF has called for a $6-billion increase in the Egyptian economy’s net international reserves between March and June of this year, elevating it to $23 billion from $17 billion, as per its quantitative performance criteria.

To determine the net international reserves,⁠⁠⁠⁠⁠⁠⁠ the central bank’s net foreign liability position, which was around $9 billion as of March, was subtracted from the economy’s liquid foreign currency reserves, which were $26.5 billion at the time, Moody’s added.

It stated: “The targeted adjustment under the IMF program is thus equivalent to a reversal in the central bank's net foreign liability position by $6 billion over the next three months, reducing it to about $3 billion by June.”

Egypt’s external liquidity will continue to be hindered by the central bank’s failure to strengthen its net foreign debt position and liquid foreign exchange reserves, noted the agency.

According to the government’s targets, asset sales are to raise $2 billion by the end of this fiscal year in June 2023, and another $4.6 billion in fiscal 2024.

However, progress has been slow due to predictions of further devaluation of the Egyptian pound, signs of opposition from vested interests, as well as the Gulf Cooperation Council investors attaching more onerous conditions for future financial support.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Black Box Recovered from Air India Crash Site
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Syria to Reconnect to Global Economy After 14 Years of Isolation
Israel Confirms Arming Gaza Clan to Counter Hamas Influence
Global News Roundup: From Ukraine's strategic military strikes and Russia's demands and Tensions Escalate in Ukraine, to serious legal issues faced by Britons in Bali and Trump's media criticism, the latest developments highlight a turbulent landscape
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
Iran Warns Europe Against Politicizing UN Nuclear Report
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
×