Egypt banks’ foreign deposits fall to $42.6 bln in September

Total foreign-currency deposits at Egyptian banks retreated to its lowest level since December 2017, according to a survey conducted by Mubasher on Wednesday, hitting 686.4 billion Egyptian pounds ($42.6 billion) in September from 699.3 billion pounds in August.

Year-on-year, deposits denominated in foreign currency fell by 5.7 percent from 728.19 billion  pounds in September 2018.

The drop in foreign-currency deposits was attributed to the recent appreciation of the Egyptian pound against the US dollar, a source at a state-run bank told Mubasher.

On 26 September, the Central Bank of Egypt (CBE) decided to lower key interest rates by 100 basis points (bps).

Several analysts previously told Mubasher that the CBE is expected to reduce key interest rates by 50-100 bps during its next meeting.