Local Liquidity Hit EGP 1.167 Trillion At End-Dec: CBE

The volume of local liquidity in Egypt rose 1.7% (EGP 19.663 billion) to reach EGP 1.167 trillion at the end of last December, compared to EGP 1.144 trillion at the end of last November, according to the latest report of the Central Bank of Egypt (CBE).

The volume of money supply surged EGP 253 million to reach EGP 288.139 billion at the end of last December, compared to EGP 287.886 billion at the end of last November. This slight increase came as a result of the hike in the value of currency in circulation outside the banking system which rose to EGP 205.02 billion at the end of last December, compared to EGP 202.786 billion at the end of last November. In addition, the value of local-currency current deposits fell from EGP 85.103 billion at the end of last November to EGP 83.119 billion at the end of last December.

The volume of quasi money witnessed an increase of about EGP 20 billion to reach EGP 879.021 billion at the end of 2012, compared to EGP 859.611 billion at the end of last November, as a result of the increase in local-currency non-current deposits which rose EGP 6.9 billion to reach EGP 673.098 billion at the end of last year, compared to EGP 666.137 billion at the end of last November, as well as the increase in foreign-currency current deposits which rose EGP 4 billion to register EGP 50.784 billion at the end of last December, compared to EGP 46.516 billion at the end of last November. In addition, the value of foreign-currency non-current deposits rose EGP 9 billion to reach EGP 155.139 billion at the end of last December, compared to EGP 146.958 billion at the end of last November.

CBE attributed such increase in local liquidity to the hike in the value of net local assets which reached EGP 1.033 trillion at the end of last year, compared to EGP 1 trillion at the end of last November, thanks to the increase in domestic credit by EGP 3 billion and the increase in negative balance of net budget items by EGP 4 billion.