Egypt’s domestic liquidity jump 1.9 pct end-July: CBE

Egypt’s domestic liquidity has boosted by 1.9 percent (33.99 billion Egyptian pounds) to record 1.799 trillion pounds at the end of July 2015, state’s Central Bank (CBE) announced Monday. In comparison, Egypt’s domestic liquidity had reached 1.765 trillion pounds at the end of June 2015.

In Its latest report issued Monday, CBE stated that the rise in domestic liquidity is due to the increase in money supply as it hit 502.54 billion pounds at the end of July 2015 versus 499.06 billion pounds at the end of June 2015.

The jump in state’s money supply was a result to the growth in circulation outside the banking system that hit 306.87 billion at the end of July 2015 opposed to 292.69 billion pounds at the end of June 2015, the report added.

According to the report, the demand deposits in local currency have been decreased from 206.36 billion pounds at the end of June 2015 to 195.66 billion pounds at the end of July 2015.

The leap in domestic liquidity was also backed by the rise in quasi-money that hit 1.296 trillion pounds at the end of July 2015 compared to 1.266 trillion pounds at the end of June 2015; the increase is estimated at 30.5 billion pounds.

The report clarified that the rise in quasi-money was due to three reasons; the first one is the jump in time and saving deposits in local currency that have been hiked from 1.003 trillion pounds at the end of June 2015 to 1.023 trillion pounds at the end of July 2015.

The second reason is the surge in demand deposits in foreign currencies from 68.63 billion pounds at the end of June 2015 to 72.06 billion pounds at the end of July 2015.

Moreover, the increase in quasi- money was also due to the rise in time and saving deposits in foreign currencies that recorded 201.08 billion pounds at the end of July 2015 versus 194.36 billion pounds at the end of June 2015.