Egypt's Currency Squeeze Intensifies as Banks' Foreign Buffers Decline

Net foreign assets held by Egypt’s commercial banks went into a record deficit in June, as a lack inflows drives a deterioration in the finances of a country already struggling with its worst hard-currency shortage in years.

The gap among lenders reached $17.1 billion, compared with $14.5 billion in May, according to data released by the central bank. The shortfall opened up as a result of a $1.7 billion drop in banks’ assets and an around $950 million increase in their liabilities.

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