Egyptian Banking Sector’s Local Liquidity Hit EGP 1.144 Trillion In October 2012

The Central Bank of Egypt (CBE) stated that the local liquidity held by the banking sector rose by EGP 20.3 billion (1.7%) to reach EGP 1.144 trillion at the end of last October, up from EGP 1.124 trillion at the end of September, 2012.

According to CBE’s recent report, the volume of money supply surged by EGP 8.8 billion (3.1%) to reach EGP 291.6 billion at the end of last October, up from EGP 282.8 billion at the end of last September due to the increase in the currency in circulation outside the banking system which rose by EGP 6.9 billion to 205 billion at the end of last October, up from EGP 198 billion at the end of last September. Local-currency current deposits surged to EGP 86.6 billion at the end of last October, compared to EGP 84.7 billion at the end of last September.

The volume of quasi money rose by EGP 11.4 billion to reach 852.9 billion at the end of last October, compared to EGP 841.4 billion at the end of last September, as a result of the increase in the local-currency non-current deposits which rose by EGP 9.1 billion to reach EGP 662.4 billion, up from EGP 653.3 billion as well as the increase in foreign-currency non-current deposits which surged to EGP 45.8 billion, up from EGP 45.3 billion.

CBE attributed the increase in local liquidity to the increase in the net local assets which surged by EGP 15.9 billion to reach EGP 990.2 billion, up from EGP 974.3 billion, thanks to the hike in domestic credit which rose to EGP1.148 trillion at the end of last October, up from EGP 1.132 trillion at the end of last September as well as the increase in net negative budget balances which grew to EGP 158.5 billion at the end of last October, compared to EGP 157.9 billion at the end of last September.