CAIRO – 28 February 2019: Domestic liquidity recorded LE 3.628 trillion by the end of December 2018, with an increase of 5 percent or LE 174.4 billion during the period of July to December of fiscal year of 2018/2019, according to the Central Bank of Egypt (CBE).
CBE elaborated in a report Thursday that the increase in domestic liquidity reflected on near money by about LE 158.9 billion with a rate of 6 percent, and on Money supply by about LE 15.5 billion or 1.9 percent.
CBE attributed the increase of near money to the hike in local currency time and saving deposits by LE 132.3 billion or 6.9 percent, and the rise in foreign currency demand deposits by LE 26.6 billion or 3.7 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 reason behind its rise was the hike in demand deposits in local currency by LE 12.4 billion or 3.3 percent, and the increase of currency in circulation outside the banking system by LE 3.1 billion or 0.7 percent.
According to the report, the bank attributed the rise in local liquidity during the July- December period to the increase in net domestic assets and the decrease in net foreign assets at the banking system, as net foreign assets declined by LE 182.1 billion while the net domestic assets rose by LE 356.5 billion.
Also, CBE announced that total deposits at the banking system, excluding the Central Bank, rose by LE 57 billion, to reach LE 3.82 trillion by the end of December 2018, compared to LE 3.76 trillion by the end of November.
CAIRO - 28 February 2019: Total deposits at the banking system, excluding the Central Bank, rose by LE 57 billion, to reach LE 3.82 trillion by the end of December 2018, compared to LE 3.76 trillion by the end of November, according to the Central Bank of Egypt.
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