A recent report released by Egypt’s Central Bank stated that domestic liquidity in Egypt’s market rose by EGP 72.7bn or 6.6%, totaling EGP 1.167tn.
The report, which was released on Wednesday, reflected an EGP 13.6bn, or 5%, increase in Egypt’s money supply. The availability of near monies in Egypt’s market increased EGP 59.1bn at a rate of 7.2%.
The increase in the nation’s monetary supply reflected an EGP 11bn, or 5.7%, increase in the amount of money traded outside of Egypt’s banking sector, with current deposits made in local currency increasing by EGP 2.6bn, or 3.3%.
The increase witnessed in available near monies came as a result of an increase in non-current deposits made in local currency, at a rate of EGP 39.2bn, or 6.2%, while deposits made in non-local currency rose EGP 19.9bn, or 10.7%.
This increase in liquidity is thought to be a result of an increase in net domestic assets, by EGP 97bn or 10.4%, and domestic credit by EGP 115.5bn or 10.8%. Another factor included the noticeable increase of negative balances for net balancing items by EGP 18.5bn, or 13.6%.
Increases in local credit were attributed to a rise in net liabilities seen in nearly all of Egypt’s economic sectors. Government net liabilities increased by EGP 99.8bn, while net liabilities in Egypt’s housing sector increased by EGP 6.8bn. Business net liabilities increased by EGP 3.3bn, with private sector liabilities increasing by EGP 5.6bn.
Foreign net assets held by Egypt’s banking sector were reported as having decreased 1.54% by July 2012, totaling EGP 24.3bn. Foreign assets held by other banks were reported to have increased during this period.
The total value of Egypt’s banks (excluding the Central Bank) rose EGP 75bn at a rate of 5.5%, reaching EGP 1.441tn by December 2012. Lines of credit made available by these banks increased EGP 10.1bn, at a rate of 2%, by July 2012.