Domestic liquidity has risen to EGP 1.627tn by the end of January, the Central Bank of Egypt (CBE) stated in its monthly bulletin. The figures show that domestic liquidity now registers EGP 1.109bn (7.3%) during the first half of fiscal year (FY) 2014/2015. "The increase in domestic liquidity was reflected in the growth of quasi-money by EGP 75.4bn (6.7%) and the money supply by EGP 36.4bn (8.9%)," the CBE added. It detailed that the rise in quasi-money resulted from the increase in time and saving deposits in local currency by EGP 68.3bn (7.8%) and in foreign currency deposits by EGP 6.2bn worth (2.6%). Meanwhile, the rise in money supply was said by the CBE to be due to the increase in demand deposits in local currency by EGP 27.7bn (19.9%). It also attributed the increase to an additional increase in currency-in-circulation outside the banking system by EGP 8.7bn (3.2%). Net domestic assets at the banking system rose by EGP 154.7bn (11.1%), as an outcome of the rise of EGP 152.4bn (9.4%) in domestic credit and the decrease of EGP 2.3bn (1%) in the negative balance of the net balancing items, CBE showed. The CBE added that the increase in domestic credit has reflected the rise in net claims on the government by EGP 104.5bn claims on the private business sector by EGP 19.7bn, the household sector by EGP 14.6bn, and the public business sector by EGP 13.6bn.
