Egypt’s economic transactions from July to September of the 2012/2013 fiscal year amounted to a total deficit in balance of payments that reached $518.7 million, compared to $2.4 billion from the same period in the previous fiscal year. This reflected a gradual decrease in the foreign net reserves of the Central Bank of Egypt.
This came as a result of the shrinking of the current deficit to $278.9 million, compared to $2.2 billion during the same period of the previous fiscal year. This reflected an increase in the number of transfers made by Egyptians living abroad to an amount totalling $839.7 million, while government payments on imports decreased by $765.4 million. Meanwhile, Egypt’s financial and capital accounts saw a decrease in their net flow of income to $443.9 million, compared to $502.4 million in previous periods.
The commercial balance of payments deficit decreased to $6.9 billion during the period from July to September of the 2012/2013 fiscal year, compared to a high of $7.8 billion during the same period in the previous fiscal year. This came as a result of Egypt’s decrease in payments on imports by 5.2 per cent, bringing their total down to $13.8 billion, compared to $14.6 billion in the same period in the previous fiscal year.
Egypt’s services surplus rose by 4.7 per cent, totalling $1.7 billion from the period between July and September of the 2012/2012 fiscal year, compared to $1.6 billion during the same period in the previous year. The rise in Egypt’s services surplus reflects a drop in the country’s tourist revenues by 2.3 per cent to an amount totalling $2.6 billion, compared to $2.7 billion dollars from the same period of the previous fiscal year. This drop could be attributed to a decrease in the number of tourist nights spent in Egypt to 35.5 million during the July-September period of the 2012/2013 fiscal year, compared to 36.4 million nights in the same period of the previous year. The amount of money collected in fees from the Suez Canal also decreased by 5.4 per cent to $1.3 billion, compared to $1.4 billion during the same period of the previous fiscal year.
Egypt’s capital and financial transactions during the July-September period of the 2012/2013 fiscal year witnessed a decrease in net flow of investments to $327.1 million, compared to a net flow of $1.7 billion during the same period of the previous fiscal year. During this period foreigners purchased $133.5 million worth of Egyptian bonds and treasury bills, and $194.6 million in stock shares.
Direct foreign investment into Egypt shrunk to $108.1 million dollars, compared to $440.1 million during the same period of the previous fiscal year. Much of this money came in the form of domestic investments made for the purpose of creating new companies or increasing the capital of already existing ones, whose net flow totalled $540.1 million, compared to $521.9 million during the same period of the previous fiscal year. Investments in the petroleum sector totalled $446.8 million, compared to $412.4 million during the same period of the previous fiscal year.
