July 2018 saw a limited growth in the bank deposit volumes, whether in the local or foreign currencies compared to previous months.
“The volume of deposits in banks in local currency by the end of July 2018 reached EGP 2.302tn compared to EGP 2.298tn by the end of June, with an increase of EGP 4bn,” the Central Bank of Egypt (CBE) said.
The CBE explained in a recent report that demand deposits in local currency declined to EGP 376.34bn by the end of July, compared to EGP 381.72bn by the end of June. Term deposits increased to EGP 1.926tn compared to EGP 1.916tn.
The bank pointed out a decrease in the private sector deposits in local currency, recording EGP 344.1bn by the end of July 2018, compared to EGP 357.3bn by the end of June 2018, while household sector deposits saw an increase by EGP 8bn to reach EGP 1.903tn compared to EGP 1.885tn.
Government sector deposits recorded about EGP 55.3bn by the end of July compared to EGP 55.9bn by the end of June.
The bank deposit volumes in foreign currency reached $40.433bn by the end of July 2018, compared to $39.94bn by the end of June 2018, an increase of $493m, according to the CBE.
The CBE added that current foreign currency deposits were estimated to be $8.518bn by the end of July, compared to $8.343bn in June. Non-current deposits also increased to $31.9bn compared to $31.596bn.
According to the CBE, the volume of the household sector’s deposits in foreign currencies increased by $298m to record $27.336bn by the end of July, compared to $27.038bn by the end of June.
Deposits of the private sector increased by $10.79bn by the end of July compared to $10.593bn by the end of June with an increase of $197m.
In a related context, the CBE revealed that the money supply M1 declined by EGP 8.9bn in July 2018, recording EGP 814.4bn compared to EGP 823.3bn by the end of June 2018.
The CBE explained that this decline came as a result of the decline in the cash outside the banking sector, recording EGP 438.1bn by the end of July, compared to EGP 441.5bn by the end of June, and current deposits in local currency in banks declined to record EGP 376.3bn by the end of July, compared to EGP 3817bn by the end of June.
Local currency M2 increased by EGP 8.3bn in July 2018, recording EGP 3.465tn, compared to EGP 3.457tn by the end of June 2018.
This increase of near money was supported by an increase in non-current deposits in local currency, recording EGP 1.926tn, compared to EGP 1.916tn. Current and non-current deposits in local currency increased to record EGP 724.9bn compared to EGP 716.9bn.