Egypt’s Local Liquidity Rose EGP 30 Bln In Q1

The Central Bank of Egypt (CBE) stated that the local liquidity rose by EGP 29.9 billion (2.7%) to reach EGP 1.12 trillion at the end of last September, raising the volume of money supply by EGP 8.3 billion (3%) to reach EGP 282.8 billion and the volume of quasi money by EGP 21.6 billion (2.6%) to reach 841.4 billion.

The volume of money supply increased as a result of the increase in the currency in circulation outside the banking system which rose by EGP 4 billion (2.1%), and the local-currency current deposits which surged by EGP 4.3 billion (5.3%).

The increase in the volume of quasi money came as a result of the increase in the local-currency non-current deposits which rose by EGP 19.5 billion, and the foreign-currency non-current deposits which surged by EGP 2.1 billion.

The net local assets surged by EGP 37.6 billion (4%) during Q1 of FY 2012/2013, thanks to the increase in domestic credit which rose by EGP 59.8 billion and the net negative budget balances which grew by EGP 22.2 billion.

The net foreign assets held by the Egyptian banking sector retreated by EGP 7.7 billion (4.8%) because of the drop in net foreign assets held by CBE and banks.