CAIRO: A report issued by the Central Bank of Egypt said that the performance of transactions globally improved during the period from July to March for the fiscal year 2009/2010 compared to the corresponding period the previous year. It said there was a total surplus of payments of $3.1 billion compared with a total deficit of $3.2 billion during the same period last year. The report, released on Sunday, explained that this surplus is reflected in the increase in international reserves of the Central Bank of Egypt where the drop in the deficit in the balance of current transactions by 24 percent to reach around $2.6 billion compared to $3.4 billion in the corresponding period of the previous fiscal year, “which has witnessed a deepened global financial crisis.” The report said that while its capital and financial account net inflows amounted to $5.2 billion compared with $700 million during the previous period. The report pointed out that the trade deficit fell to a record $18.5 billion during the period from July to March 2009/2010 compared to $19.5 billion during the same from the previous financial year and that the “outcome of the retreat of commodity exports at a rate of 9.11 percent to $17 billion and the payments for commodity imports at 4.8 percent to $5.35 billion.” The decrease in commodity export earnings, the report said, is attributed to reduced oil exports by 9.17 percent and non-oil exports by 7 percent, and lower payments due for commodity imports to lower oil imports by 1.4 percent, and import non-oil rate of 2.9 percent. According to the report, “the service surplus balance dropped by 9 percent to around $8.8 billion compared to $9.6 billion during the previous fiscal year by a result of declining investment income receipts of 4.61 percent, to lower interest rates on deposits abroad and lower investment income for the financial reach of those receipts to $5.6 million compared to approximately $1.7 billion dollars during the same period of previous fiscal.” Tourism revenues rose by 1.10 percent to a record $8.7 billion compared to $7.9 billion dollars during the same period the previous fiscal year as a result of “high number of tourist increase by 1.1 percent to reach 102.6 million nights compared to 3.93 million nights.” BM
