Central Bank of Egypt
The forum sought to strengthen the banking sector’s capabilities in line with international best practices, playing a crucial role in safeguarding and maintaining financial and monetary stability.
Following the $35 billion Ras El Hikma deal earlier in the year, Egypt's net foreign reserves escalated by $11.2 billion over the last 5 months, providing the central bank with a substantial cushion for floating the pound.
Egypt’s NFAs climbed into the positive back in May, which marked the first time the country’s NFAs were in the green since 2022
The financial recovery can be partly attributed to a decree issued by Prime Minister Mostafa Madbouly in November 2022
In line with Egypt's Vision 2030, the CBE implemented several initiatives and incentives to encourage unbanked citizens to join the banking system
During this period, investments flowing into Egypt surpassed those exiting, resulting in a net inflow of $14.6 billion.
The Central Bank's foreign assets have shifted into surplus territory for the first time since March 2022, marking the end of a prolonged deficit phase.
The country’s GDP was recorded at LE 2.14 trillion, up from LE 2.09 trillion in FY2022/2023, according to the report
By the end of September 2023, the total had reached 36.7 million, with 96.2 million transactions amounting to LE 11.64 billion, as explained in the CBE’s economic review for FY2023/2024
Following reforms enacted on March 6, 2024, remittances more than doubled from their previous levels, hitting around $1.3 billion in February 2024.
Foreign currency reserves dipped slightly from $36.9 billion in June to $36.3 billion last month.
This positive trend followed a surplus of LE 676.4 billion in May 2024, a significant increase from the LE 174.385 billion deficit recorded in April of the same year.
The source also mentioned that the current reserve balance is sufficient to cover approximately 7.9 months' worth of the country's merchandise imports.
The report suggests that in September, the CBE will reduce interest rates by 1 percent, followed by a further decrease of 2 percent in the last quarter of 2024.
Egypt's real GDP growth had slowed to 2.2 percent in Q1 2024, down from 2.3 percent in the previous quarter, according to the official release from the CBE
Citing data released by the national statistics agency, the CBE noted a similar decline in monthly core inflation, which stood at 1.3 percent last month, down from 1.7 percent a year earlier.
The $4.1 billion surplus recorded during the July 2023 – March 2024 period was bolstered by strong capital inflows, which included Foreign Direct Investment (FDI) soaring to $23.7 billion, a three-fold increase from the previous year's $7.9 billion
Egypt’s slow but steady NIRs growth, despite paying off large sums of outstanding debt, reflects a positive trend in the economy’s recovery.
The CBE also shared that the net open foreign currency positions as a percentage of total capital base improved significantly to 5.7 percent in March 2024, from -1.6 percent in December 2023
We-Fi aims to facilitate access to finance for women-led micro, small, and medium enterprises (MSMEs), in addition to providing them with the essential technical support
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