The Central Bank of Egypt (CBE) has announced that the net foreign assets of the Egyptian banking sector reached a surplus equivalent to EGP 626.6bn in June 2024. This marks the second consecutive month of surplus.
In May 2024, net foreign assets in Egypt achieved a surplus of EGP 676.4bn, following a deficit of EGP 174.385bn in April 2024. Notably, this marked the first surplus since January 2022, which had seen a surplus of EGP 9.674bn.
The surplus was driven by the CBE’s decisions to unify the exchange rate on March 6 and increase the interest rate by 600 basis points. The net foreign assets item represents the assets due to the banking sector from non-residents, minus liabilities to non-residents, reflecting the net transactions of the banking sector (including the CBE) with the global market over a specified period.
In a recent report, the CBE stated that the total foreign assets of the Egyptian banking sector (both the CBE and commercial banks) reached the equivalent of EGP 3.634trn in June, while liabilities stood at EGP 3.008trn.
Domestic Liquidity
In another development, the CBE reported that domestic liquidity in the Egyptian banking sector increased to EGP 10.622trn in the first half of 2024, up from EGP 8.877trn in December 2023.
According to the CBE, domestic liquidity rose from EGP 8.877trn in December 2023 to EGP 8.989trn in January 2024, EGP 9.124trn in February, EGP 9.988trn in March, EGP 10.097trn in April, and EGP 10.352trn in May.
The CBE also noted that the money supply reached EGP 2.701trn in June 2024, up from EGP 2.370trn in 2023, while currency in circulation outside the banking sector was EGP 1.226trn, compared to EGP 1.068trn.
Non-Governmental Deposits in Local Currency
The CBE highlighted an increase in total non-governmental deposits in local currency at banks operating in the local market to EGP 6.863trn in June 2024, up from EGP 6.247trn in December 2023, marking an increase of approximately EGP 616bn.
Demand deposits in local currency reached EGP 1.474trn in June 2024, compared to EGP 1.301trn in December 2023. The public business sector’s share of these deposits was EGP 88.077bn, the private sector EGP 861.6bn, and the household sector EGP 525.6bn.
Time deposits and savings certificates in local currency amounted to EGP 5.388trn in June 2024, compared to EGP 4.946trn in December 2023. The public business sector held EGP 93.5bn of these deposits, the private sector EGP 329.6bn, and the household sector EGP 4.965trn.
Non-Governmental Deposits in Foreign Currencies
Additionally, the CBE reported a rise in non-governmental deposits in foreign currencies at banks to the equivalent of EGP 2.531trn in June 2024, up from EGP 1.561trn in December 2023, an increase equivalent to EGP 970bn.
Demand deposits in foreign currencies amounted to approximately EGP 616.5bn, while time deposits and savings certificates reached approximately EGP 1.914trn. The public business sector accounted for about EGP 26.216bn of demand deposits, the private sector EGP 410.930bn, and the household sector EGP 179.664bn.
Regarding time deposits and savings certificates in foreign currencies, the public business sector held about EGP 124.154bn, the private sector EGP 428.005bn, and the household sector EGP 1.362trn.
