### Local Liquidity in Egyptian Banks Surpasses EGP 10.6 Trillion
#### Money Supply Reaches EGP 2.701 Trillion by the End of June
Recent official data revealed a significant increase in local liquidity within the Egyptian banking sector, reaching EGP 10.622 trillion by the end of June, compared to EGP 8.877 trillion at the end of December 2023, marking a 19.6% increase.
According to data released by the Central Bank of Egypt, local liquidity rose from EGP 8.877 trillion at the end of December last year to EGP 8.989 trillion by the end of January 2024, then to EGP 9.124 trillion by the end of February. It further surged to EGP 9.988 trillion by the end of March, EGP 10.097 trillion by the end of April, and EGP 10.352 trillion by the end of May, ultimately reaching EGP 10.622 trillion by the end of June.
The Central Bank of Egypt reported that the money supply stood at EGP 2.701 trillion by the end of June, compared to EGP 2.370 trillion at the end of 2023.
The data also indicated a monthly decline of 8.7% in net foreign assets within the Egyptian banking sector during June, registering $13 billion compared to $14.3 billion at the end of May. This decline followed the transformation of net foreign assets in Egyptian banks from a deficit to a surplus in May for the first time in 28 months. The dollar was valued at EGP 47.33 in May and EGP 48.08 per dollar in June.
Foreign assets held by banks refer to deposits and savings in foreign currencies that can be liquidated when the bank needs liquidity to meet its obligations. The Central Bank attributed the overall decline in net foreign assets within the banking sector to a 40.2% monthly decrease in commercial banks’ foreign assets in June, recording about $2.75 billion from $4.6 billion the previous month. This was partially offset by a 6.1% increase in the Central Bank’s net foreign assets in June, recording approximately $10.3 billion.
The decrease in net foreign assets in Egyptian banks coincided with the depreciation of the Egyptian pound against the dollar, mainly due to the outflow of some indirect foreign investments, particularly those financed through the interbank dollar trading mechanism.
By/radwa sherif ✏️✏️📚