The Central Bank of Egypt (CBE) reported that customer deposits at banks increased to EGP 13.599trn in December 2024, up from EGP 13.217trn in November — marking a monthly rise of EGP 382bn.
According to the CBE’s latest report, government deposits reached EGP 2.938trn, comprising approximately EGP 2.441trn in local currency and the equivalent of EGP 497.561bn in foreign currencies.
Non-government deposits totaled EGP 10.661trn, with about EGP 7.614trn in local currency and EGP 3.046trn in foreign currency.
Within local currency deposits, the public business sector accounted for EGP 187.570bn, the private business sector EGP 1.292trn, households EGP 6.076trn, and non-residents EGP 58.977bn.
In terms of foreign currency deposits, the public business sector held the equivalent of EGP 172.696bn, the private business sector EGP 1.005trn, households EGP 1.781trn, and non-residents EGP 87.076bn.
Credit Facilities
The CBE also revealed that total credit facilities provided by banks reached EGP 8.375trn in December 2024, up from EGP 7.209trn in June — a six-month increase of EGP 1.166trn.
Credit facilities encompass loans, letters of credit, and guarantees extended by banks to support trade and import operations.
The growth was driven by an EGP 761.8bn (21.3%) increase in credit extended to the government and an EGP 404.2bn (11.2%) increase in credit to non-government entities.
Credit to the government rose by EGP 355.4bn in local currency and the equivalent of EGP 406.4bn in foreign currency.
Regarding the distribution of non-government credit by sector, the private business sector accounted for 60.6% of the total in December 2024. By economic activity, the industrial sector claimed 34.3%, services 27%, trade 8.3%, and agriculture 1.6%. Undistributed sectors represented 28.8%, of which households comprised 28.6%.
Local Liquidity
The CBE indicated that local liquidity in the banking sector grew by EGP 1.017trn between July and December 2024, reaching EGP 11.63trn — a 9.6% increase over the six-month period.
This expansion reflected a rise in quasi-money by EGP 916.5bn (11.6%) and in the money supply by EGP 101.4bn (3.8%).
The jump in quasi-money resulted from an EGP 484.6bn (9%) increase in non-current deposits in local currency and the equivalent of EGP 431.9bn (17.1%) rise in foreign currency deposits.
Meanwhile, the money supply growth was due to an EGP 207.1bn (14%) increase in current deposits and an EGP 105.7bn (8.6%) decline in cash circulating outside the banking system.
Overall, the growth in local liquidity was the net outcome of a rise in net domestic assets and a contraction in net foreign assets.
Net Domestic Assets
The CBE reported that net domestic assets within the banking sector rose by EGP 1.378trn (13.8%) between July and December 2024.
This increase was attributed to a EGP 2.581trn (23.5%) surge in domestic credit, partially offset by a EGP 1.203trn decline in net budget items.
Growth in domestic credit stemmed from an EGP 2.165trn rise in net claims on the government, along with increases of EGP 238.3bn from the private business sector, EGP 58.8bn from the public business sector, and EGP 119.5bn from households.
Net Foreign Assets
Conversely, the banking sector’s net foreign assets contracted by the equivalent of EGP 360.7bn (57.6%) over the same period.
This was primarily due to a decline of EGP 458.6bn in net foreign assets at banks, while net foreign assets at the CBE increased by EGP 97.9bn.
Reserve Money
Finally, the CBE noted that reserve money rose by EGP 278.3bn (14.2%) during the second half of 2024, reaching EGP 2.243trn.
The increase resulted from a EGP 370.9bn (58.3%) rise in banks’ local currency deposits at the CBE, offset by a EGP 92.6bn (7%) drop in cash held outside the CBE’s vaults.
Contributing factors included a EGP 312.1bn rise in net claims on the government, a EGP 97.9bn increase in the CBE’s net foreign assets, and a EGP 57.3bn rise in net budget items, partially countered by a EGP 189bn drop in other net claims on the government.
