CBE: Domestic Liquidity Increases by 4% to 4,053 Trillion

The Central Bank of Egypt (CBE) announced that the volume of domestic liquidity increased during the period  from July - November of the fiscal year 2019/20 to reach EGP 4,053 trillion registering an increase of EGP 189.5 billion at a rate of 4.9%.

The central bank said in a report issued on Sunday that the increase in domestic liquidity was reflected in quasi-money growth of EGP 152 billion at a rate of 5.2%, and the money supply by EGP 37.5 billion at a rate of 4.1%.

The increase in quasi-money came as a result of the increase in non-current assets in the local currency by EGP 205.6 billion at a rate of 9.2%, and the decrease in deposits in foreign currencies equivalent to EGP 53.6 billion at a rate of 7.5%.

As for the money supply, the increase came as a result of the increase in current assets in the local currency by about EGP 21.6 billion, or 5%, and the increase of currency in circulation outside the banking system by EGP 15.9 billion, at a rate of 3.3%.

The report pointed out that the increase achieved in domestic liquidity came as a result of the rise in net domestic assets (NDA) and the rise in net foreign assets (NFA) within the banking system, where the NFA increased by EGP 52.1 billion at a rate of 17.4% , and the NFA by EGP 46.3 billion.

Also, the local assets inventory increased by EGP 137.4 billion, or 3.9 percent, as a result of increasing the negative balance of the net budget deficit by about EGP 88.6 billion at a rate of 36.4 percent, and the increase in domestic credit by EGP 226 billion at a rate of 5.9 percent.

Moreover, the domestic credit increased as a result of an increase in net liabilities by EGP 174.6 billion, household liabilities by EGP 41.3 billion, private business sector by  EGP 13.9 billion, and a decrease in Public liability by EGP 3.8 billion.