CAIRO - Egypt's net foreign assets deficit widened by 27.5 billion Egyptian pounds ($894.31 million) in September to a negative 828.7 billion pounds, caused by an increase in central bank liabilities, according to central bank data.

The deficit had narrowed by 11.1 billion pounds in August and 24.9 billion in July, mostly due to an increase in net foreign assets (NFAs) with commercial banks.

A drawdown on NFAs, which represent both central bank and commercial bank assets owed by non-residents minus their liabilities, has helped the central bank support Egypt's currency over the past two years.

In September 2021, NFAs stood at a positive 248 billion pounds.

Following a squeeze on its finances, Egypt devalued its currency in March 2022 and several times since after fixing it to the dollar for a year and a half. The Egyptian pound has lost half its value against the dollar over the last 18 months.

The IMF said in December that Egypt had been financing its current account deficit by drawing down NFAs.

($1 = 30.7500 Egyptian pounds)

(Reporting by Patrick Werr, Editing by Louise Heavens)