Domestic liquidity has increased by 1.9% (EGP 28.4bn) in July to reach EGP 1.545tn, the Central Bank of Egypt’s (CBE) monthly report showed.
The increase was reflected in the growth of money supply by EGP 17.3bn (4.2%).
The rise in domestic liquidity during July reflects the increase in net domestic assets and the retreat in net foreign assets at the banking system, the report added.
Net domestic assets in the banking system rose by EGP 38.9bn (2.8%) due to the EGP 25.8bn rise in domestic credit and the EGP 13.1bn retreat in the negative balance of net balancing items.
Net foreign assets at the banking system decreased by EGP 10.5bn following the retreat in net foreign assets at banks by EGP 11bn and the rise in those at the CBE by EGP 0.5bn.
The aggregate financial position of banks, excluding the CBE, has risen by EGP 36.7bn (2%) during July, registering EGP 1.853tn at the end of July.
With regard to banks’ credit balances, it has moved up by EGP 0.2bn during July, with the private business sector accounting for 63.4% of total non-government credit balances.
The breakdown of non-government credit balances by economic activity at the end of July includes: 34.6% for the industrial sector; 24.9% for services; 10.9% for trade; 1.2% for agriculture; and 28.4% for unclassified sectors.
Net international reserves increased from $16.7bn at the end of June to $16.8bn at the end of August. This covers three months of merchandise imports, with an increase of $0.1bn or 0.9% during July-August 2014/2015.
Reserve money has increased by EGP 6.1bn (1.7% increase) in July due to an increase in net claims on the government by EGP 30.2bn, net claims on banks by EGP 1.2bn and net foreign assets by EGP 0.5bn.
The increase was reflected in a rise in the currency circulation outside the CBE by EGP 15.3bn.