Domestic liquidity reaches LE 3.67T by end of February: CBE

CAIRO – 22 May 2019: Domestic liquidity recorded LE 3.674 trillion by the end of February 2019, with an increase of 6.4 percent or LE 220.4 billion during the period of July to February of fiscal year of 2018/2019, according to the Central Bank of Egypt (CBE).

CBE elaborated in a report that the increase in domestic liquidity reflected on near money “quasi-money” by about LE 220.4 billion with a rate of 7.6 percent, and on Money supply by about LE 20 billion or 2.4 percent.

CBE attributed the increase of near money to the hike in non-current deposits in local currency by LE 169.6 billion or 8.8 percent, and the rise in foreign currency demand deposits by LE 30.8 billion or 4.3 percent.

Near money or quasi-money is the high-liquid non-cash assets, including bank deposits, Certificates of Deposit (CDs) and Treasury Bills. The term refers to the assets that can be quickly converted into cash.

Regarding money supply, the report attributed the increase in the money supply to the rise in current deposits in local currency by LE 14.5 billion, at an average of 3.8 percent.

Meanwhile, net foreign assets at the banking system hiked LE 276.4 billion or 8.8 percent, as net foreign assets at banks rose by LE 10 billion, and net foreign assets at CBE by LE 46 billion.

As per net domestic assets at the banking system, they rose LE 276.4 billion or 8.8 percent, due to Domestic credit increased by LE 269.8 billion (7.8 percent) and negative balance of net items decreased by LE 6.6 billion (2.1 percent).