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Foreign currency deposits up $1.3bn in 1Q 2019 to $42.81bn - Daily News Egypt

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Foreign currency deposits up $1.3bn in 1Q 2019 to $42.81bn

Local currency deposits up by EGP 88.1bn to EGP 2.531tn at end of March 2019


The Central Bank of Egypt (CBE) said that foreign currency deposits in the banks operating in the local market rose by $1.3bn in the first quarter (Q1) of 2019 to reach $42.810bn at the end of March, compared to $41.59bn at the end of December 2018.

In a recent report, the CBE stated that current deposits recorded about $8.588bn at the end of March, while non-current deposits amounted to $34.222bn.

According to the CBE, public sector deposits in foreign currencies reached about $2.335bn at the end of March, compared to $2.274bn at the end of December 2018. Private deposits stood at $11.753bn at the end of March, compared to $11.131bn at the end of December 2018.

Furthermore, household deposits rose by $618m to $28.727bn, compared to $28.109bn, accounting for 67% of foreign currency deposits.

In the same context, the CBE pointed out that deposits in local currency at banks rose by EGP 88.1bn to reach EGP 2.531tn by the end of March 2019, compared to EGP 2.443tn by the end of December 2018.

Current deposits rose to EGP 411.6bn at the end of March, compared to EGP 394.11bn at the end of December. Non-current deposits rose to EGP 2.119tn compared with EGP 2.049tn.

The CBE reported a decline in public sector deposits to EGP 56.641bn by the end of March 2019, compared to EGP 63.457bn by the end of December 2018.

In contrast, private sector deposits rose to EGP 368.319bn at the end of March, compared to EGP 364.058bn by the end of December. Private sector deposits increased significantly from EGP 2.015tn to EGP 2.106tn.

In another context, the CBE revealed that the surplus of net foreign assets in banks declined by about $445m during March 2019 to reach $13.997bn, compared to about $14.442bn by the end of February 2019.

The fall in foreign net assets surplus came in March following a recovery which continued throughout January and February, rising by $7.33bn since December 2018.

The total foreign assets in the sector recorded about $61.603bn at the end of March 2019, compared to $62.605bn at the end of February, a decline of about $1bn.

The CBE assets rose by $68.2m to $43.22bn by the end of March, while assets in the banking sector fell by $1.1bn to $18.383bn, compared to $19.452bn at the end of February 2019.

At the level of foreign currency liabilities, the CBE said it fell by about $556.04m in March to reach $47.607bn at the end of March, compared to $48.163bn at the end of February.

Commitments fell on the back of banks repaying $528.14m, reducing total liabilities to $19.058bn. Commitments with the CBE declined by $27.9m to $28.548bn.

According to the CBE, the net foreign assets deficit in banks increased to $675.391m at the end of March, compared to $134.289m in February, after falling from $6.4bn in December 2018.

The surplus of net foreign assets had recovered in January 2019, following a six-month decline from July to December 2018, coinciding with the return of foreign inflows to government debt instruments.

The net foreign assets surplus stood at $13.996bn at the end of March 2019, compared with $7.112bn at the end of December 2018, an increase of $6.8bn.

On another matter, the CBE said that M1 rose by EGP 26.5bn during Q1 of 2019, to record EGP 862.588bn at the end of March, compared to EGP 836.045bn by the end of December 2018.

The money supply, supported by the increase in cash traded outside the banking sector, rose to reach EGP 450.993bn at the end of March, compared to EGP 441.935bn at the end of December 2018. Current deposits in local currency increased from EGP 394.11bn at the end of December to EGP 411.595bn at the end of March 2019.

Domestic liquidity, which consists of money supply and quasi money, rose by EGP 95.2bn in Q1 to reach EGP 3.724tn by the end of March 2019, compared with EGP 3.629tn at the end of December 2018.

Quasi money increased from EGP 2.793tn at the end of December to EGP 2.861tn by the end of March 2019, up EGP 68.666bn.

The increase came on the back of the increase in term deposits in local currency by EGP 70.58bn in Q1 of 2019 to record EGP 2.119tn, while current and non-current deposits in foreign currencies fell by EGP 2bn to reach EGP 741.62bn by the end of March.

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https://dailyfeed.dailynewsegypt.com/2019/05/05/foreign-currency-deposits-up-1-3bn-in-1q-2019-to-42-81bn/
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