CBE: Domestic Liquidity Grows by 9% in 4M-2023

The latest monthly report from the central bank of Egypt reveals an increase in domestic liquidity within the Egyptian banking sector, with a growth rate of 9% during the first 4 months of the current year, reaching EGP 8.069 tn by the end of April 2023, compared to EGP 7.403 tn at the end of December 2022. The increase amounted to approximately EGP 666.4 bn.

Local liquidity consists of money supply and near-money assets. Money supply includes cash in circulation outside the banking system and current deposits in the local currency, while near-money assets encompass non-current deposits in both the local and foreign currencies, as well as current deposits in foreign currency.

In terms of money supply, it increased at a rate of 9.48%, with an increase of around EGP 165 bn during the first 4 months of the current year, reaching EGP 1.905 tn by the end of April 2023, compared to EGP 1.740 tn at the end of December 2022.

Cash in circulation outside the banking sector reached EGP 926.7 bn by the end of April 2023, compared to EGP 831.2 bn at the end of December 2022, achieving a growth rate of 11.48% and an increase of EGP 95.5 bn during the first 4 months of the current year.

Current deposits in the local currency increased by 7.65%, with an increase of EGP 69.5 bn during the first 4 months of the current year, reaching EGP 977.9 bn by the end of April 2023, compared to EGP 908.4 bn at the end of December 2022.

As for near-money assets, they increased by 8.85%, with an increase of EGP 501.5 bn during the first 4 months of the current year, reaching EGP 6.165 tn by the end of April 2023, compared to EGP 5.663 tn at the end of December 2022.

Non-current deposits in the local currency also increased, with a growth rate of 2.88% and an increase of EGP 129.8 bn during the first 4 months of the current year, reaching EGP 4.633 tn by the end of April 2023, compared to EGP 4.503 tn at the end of December 2022.

Foreign currency current deposits jumped by approximately 39.22% during the first 4 months of the current year, reaching a value of EGP 431.4 bn by the end of April 2023, compared to EGP 309.9 bn at the end of December 2022, with an increase of EGP 121.5 mn.

Regarding non-current deposits in foreign currencies, they increased at a rate of 29.42%, with an increase of EGP 250.1 bn during the first 4 months of the current year, reaching EGP 1.100 tn by the end of April 2023, compared to EGP 850.2 bn at the end of December 2022.