Egypt’s banking system saw a significant reduction in net foreign liabilities following a substantial investment agreement with the UAE, improving by USD 7 bln to USD 22 bln at the end of February. This improvement was supported by a USD 3.9 bln increase in foreign assets held by Egyptian banks and a USD 2.6 bln reduction in the central bank’s liabilities. The USD 35 bln UAE deal has had a considerable impact on Egypt’s economy.