The Central Bank of Egypt (CBE) stated that the local liquidity rose by EGP 85 billion (8.4%), registering EGP 1.094 trillion at the end of June 2012, up from EGP 1.009 trillion at the end of June 2011. This increase is reflected on the volume of money supply as it increased EGP 25.8 billion (10.4%), registering EGP 274.5 billion at the end of last June. In addition, the quasi-money surged by EGP 59.2 billion (7.8%), as it reached EGP 819.8 billion at the end of the first half of 2012. The volume of money supply increased because the currency in circulation outside the banking system rose by EGP 26.1 billion (15.6%) and local-currency current deposits declined by EGP 0.3 billion (0.4%). The volume of quasi-money surged because the local-currency non-current deposits rose by EGP 50.1 billion (8.6%) and the foreign-currency non-current deposits increased by EGP 9.1 billion (5.1%). The local net assets surged by EGP 180.9 billion (23.9%) in FY 2011/2012 because the domestic credit rose by EGP 185.4 billion (20.8%) and the net negative budget balances grew by EGP 4.5 billion (3.3%).
