Global: Surge in Local Liquidity Strengthens Egypt’s Banking Sector

Egypt’s banking sector has experienced a notable surge in local liquidity, reaching EGP 11.34 trillion in November 2024, an increase of EGP 2.46 trillion compared to EGP 8.88 trillion recorded in December 2023, according to the Central Bank of Egypt (CBE).

The CBE reported that the money supply rose to EGP 2.775 trillion in November 2024, up from EGP 2.370 trillion a year earlier. Cash circulating outside the banking system also saw growth, climbing to EGP 1.142 trillion from EGP 1.068 trillion during the same period.

Local Currency Deposits Show Robust Growth

Demand deposits in local currency reached EGP 1.632 trillion in November 2024, reflecting an increase from EGP 1.301 trillion in December 2023. Quasi money, which includes time deposits and savings certificates, expanded significantly to EGP 8.566 trillion from EGP 6.507 trillion.

Non-governmental deposits in local currency rose by EGP 1.12 trillion, totaling EGP 7.369 trillion in November 2024.

The CBE also provided a sectoral breakdown of local currency deposits:

• Demand Deposits:
  • Public sector businesses: EGP 108.65 billion
  • Private sector businesses: EGP 897.33 billion
  • Households: EGP 627.01 billion
• Time Deposits and Savings Certificates:
  • Total: EGP 5.736 trillion (up from EGP 4.946 trillion in December 2023)
  • Households: EGP 5.351 trillion
  • Public sector businesses: EGP 63.19 billion
  • Private sector businesses: EGP 322.14 billion

Foreign Currency Deposits Reach New Highs

Non-governmental deposits in foreign currencies also recorded significant growth, rising to an equivalent of EGP 2.83 trillion in November 2024 from EGP 1.561 trillion in December 2023. This increase was driven by demand deposits and time deposits in foreign currencies, which reached EGP 673.57 billion and EGP 2.156 trillion, respectively.

A detailed sectoral breakdown of foreign currency deposits revealed:

• Public Sector Businesses:
  • Demand deposits: EGP 30.76 billion
  • Time deposits: EGP 146.4 billion
• Private Sector Businesses:
  • Demand deposits: EGP 451.14 billion
  • Time deposits: EGP 496.21 billion
• Households:
  • Demand deposits: EGP 191.87 billion
  • Time deposits and savings certificates: EGP 1.513 trillion

This substantial growth in both local and foreign currency deposits highlights the resilience and expansion of Egypt’s banking sector, driven by increased financial activity across various sectors. The rise in liquidity reflects broader economic trends and continued confidence in the banking system.