Moody’s: Egypt capital outflows hit $15 billion in March and April

Moody’s said on Monday it estimates that about $15 billion in capital outflows from Egypt occurred during March and April which have been absorbed by commercial banks to a large degree.

“Moody’s estimates that about $15 billion in capital outflows occurred during March and April which have been absorbed by commercial banks to a large degree, similar in size and effects on foreign exchange reserves to the December 2018 emerging market capital outflow episode.”

Moody’s: Egypt capital outflows to stablise

However, the rating agency said in its statement that it assumes that capital flows will stabilise without further eroding the total banking system’s net foreign asset position.

Egypt’s current account deficit to widen 4.5% of GDP

Moody’s also said it projects a temporary widening in Egypt’s current account deficit to 4.5 percent of GDP in financial year 2020, which will end next June, about 1 pp wider than in earlier financial year. It attributed the temporary widening to “weaker tourism, transport, and remittance revenues that are not fully offset by lower imports.”