CBE: Domestic Liquidity Increases to EGP 3.674 Tn

The Central Bank of Egypt (CBE) announced that the volume of local liquidity amounted to EGP 3.674 trillion, recording an increase of EGP 220.4 billion or 6.4 percent during the fiscal year 2018-19.

The bank said in its latest report that the increase in local liquidity was reflected on the growth of quasi-money by 7.6 percent to reach EGP 200.4 billion and on the money supply by 2.4 percent at EGP 20 billion.

The CBE credited the rise in quasi-money to the increase in non-current assets in local currency by 8.8 percent at EGP 169.6 billion and the increase in deposits of foreign currencies by 4.3 percent at EGP 30.8 billion.

In addition, the expansion in money supply appeared as a result of the increase in current deposits in local currency by 3.8 percent at about EGP 14.5 billion, and the increase in cash outside the banking system by 1.2 percent at EGP 5.5 billion.

[caption id="attachment_52685" align="aligncenter" width="449"] Governor of the Central Bank of Egypt (CBE) Tarek Amer[/caption]

Concerning the increase in local liquidity during the same period, the report associated it to the rise in net domestic assets and the drop of net foreign assets (NFA) in the banking system by about EGP 46 billion.

Meanwhile, domestic assets increased by EGP 276.4 billion or 8.8 percent as a result of the rise in domestic credit by EGP 269.8 billion or 7.8 percent. Moreover, the negative adjustment entries of the balance sheet items decreased by EGP 6.6 billion, down by 1.2 percent.

The report concluded that domestic credit observed an increase due to the increase in the government's net liabilities by EGP 181.7 billion.

Household liabilities also increased by EGP 43.4 billion, the public sector net financial liabilities (PSNFL) by EGP 5.6 billion, and the private sector debt by EGP 39.1 billion.