Reserve Money (MO) grows 27% in 8M; Egypt's c.bank

The reserve money (MO) has seen a growth rate of 27% during the first 8 months of 2022 to record EGP 1.307 trillion by the end of August compared to EGP 1.02 trillion by the end of December 2021, according to  Central Bank of Egypt latest data.

According to CBE Monthly Statistical Bulletin, The MO has increased by 4.23% month-on-month to jump from EGP 1.25 trillion by the end of July  to EGP 1.307 trillion by the end of August.

Reserve Money (M0): It is the base level for the money supply or the high-powered component of the money supply. In the simplest language, Reserve Money is Currency in Circulation plus Deposits of Commercial Banks with CBE.

The increase in the MO was reflected in the increase of the money supply by 14.67% during the first 8 months of this year, to reach 856.8 billion pounds at the end of August 2022, compared to 748.5 billion at the end of December 2021.

However the money supply has decreased on monthly basis by 1.26% to record EGP 867.8 billion at the end of July 2022, compared to EGP 856.8 billion at the end of last August.

Bank deposits in local currency with the CBE jumped by 60.7%, to reach EGP 450.2 billion at the end of August 2022, compared to EGP 280.1 billion at the end of December 2021.