The Central Bank of Egypt (CBE) has announced an increase of about EGP 99bn in the bank deposits in January 2022, reaching EGP 6.549trn, compared to EGP 6.450trn in December 2021. In its monthly report, the CBE stated that government deposits increased to EGP 1.349trn in January, compared to EGP 1.299trn in December 2021. It added that government deposits in the local currency amounted to EGP 1.204trn, while deposits in foreign currency amounted to EGP 144.564bn. The report said that non-governmental deposits recorded EGP 5.200trn in January 2022, compared to EGP 5.151trn last December. On the other hand, non-governmental deposits in local currency amounted to about EGP 4.518trn, compared to EGP 4.484trn in December. The public business sector accounted for EGP 86.46bn, the private business sector EGP 584.2bn, and the household sector EGP 3.831trn. Other sectors, including non-residents, purchased checks, and remittances, amounted to EGP 16.1852bn. The CBE pointed out that deposits in foreign currencies recorded the equivalent of EGP 681.6bn in January, compared to EGP 666.3bn in December. The public business sector accounted for EGP 38.8bn, the private business sector EGP 187.8bn, and the household sector EGP 439.7bn. Other sectors, including non-residents, purchased checks, and remittances, amounted to EGP 15.4bn. On a different note, the CBE announced an increase in credit facilities granted by banks during the period from July 2021 to January 2022, by about EGP 257.6bn, to reach about EGP 3.161trn in January 2022. The CBE attributed this rise to an increase of EGP 145.3bn in credit facilities granted by non-government banks, at a rate of 8.1%, and credit facilities granted to the government by EGP 112.3bn, at a rate of 10.2%. The increase in credit facilities granted to the government came as a result of the increase in balances of foreign currencies, equivalent to EGP 91.6bn, and balances in local currency by EGP 20.7bn. It added that according to the relative distribution of credit facilities for non-governmental organizations, the private business sector accounted for 60.4% of the credit facilities last January. The industrial sector accounted for 28.2% of these facilities, followed by the services sector by 25.8%, then the trade sector by 11.2%, and the agriculture sector by 2.5%. The CBE revealed that the total loans provided to bank customers, in January 2022, increased to EGP 3.095trn, compared to EGP 3.032trn in December 2021. The CBE explained that the volume of loans granted to the government amounted to EGP 1.170trn, of which EGP 794.1bn was in local currency, and the equivalent of EGP 376.6bn in foreign currencies. Total non-governmental loans increased to EGP 1.924trn, of which EGP 1.693trn was in local currency. It pointed out that the agricultural activity acquired loans worth EGP 44.3bn, the industrial activity about EGP 430.3bn, the commercial activity EGP 201.09bn, and the services activity EGP 406.4bn. The loans of the rest of the undistributed sectors, which included the household sector, individuals, and local bodies, as well as non-profit bodies and foreign bodies operating in Egypt, amounted to over EGP 611.2bn. The total foreign currency loans amounted to about EGP 230.9bn, as the agricultural sector acquired about EGP 3.5bn, the industrial sector about EGP 110.7bn, the commercial sector about EGP 12.8bn, and the service sector about EGP 93.14bn. The rest of the undistributed sectors, which included the household sector, individuals, local non-profit organizations and foreign bodies operating in Egypt, acquired about EGP 10.68bn. The CBE also said that the total volume of banks' securities portfolio, which represents investment in stocks, bonds and investment fund documents, increased to EGP 3.332tn at the end of January 2022, compared to EGP 3.324tn at the end of December 2021. The CBE explained that the government sector acquired the largest proportion of the portfolio, accounting for EGP 3.162tn, the public business sector EGP 312bn, and the private business sector EGP 150.03bn, while the outside world acquired EPG 19.295bn. It stressed that the local currency accounted for EGP 2.820trn of the portfolio's value, of which the government sector accounted for about EGP 2.684tn, while the public and private business sector and the outside world acquired EGP 312bn. The foreign currency accounted for the remaining amount, amounting to EGP 511.9bn, which included EGP 47.7bn for the government sector. The private sector and the outside world account for EGP 19.286bn. The CBE announced an increase in the volume of domestic liquidity during the period from July 2021 to January 2022 by EGP 520bn, or 9.7%, to reach about EGP 5.876trn in January. The CBE explained that the increase in local liquidity was reflected in the growth of quasi-money by EGP 394.6bn, at a rate of 9.6%, and the money supply by EGP 125.4bn, at a rate of 10%. It stated that this increase in quasi-money is the result of the increase in non-current deposits in local currency by EGP 378.4bn, at a rate of 11%, and deposits in foreign currencies by EGP 16.2bn, at a rate of 2.5%. The increase in the money supply, came as a result of an increase in current deposits in local currency by about EGP 90.9bn, or 15.6%, and an increase in cash circulated outside the banking system by EGP 34.5bn, at a rate of 5.1%. It pointed out that the increase in domestic liquidity from July 2021 to January 2022 was the result of the rise in net domestic assets and the decline in net foreign assets of the banking system. The net domestic assets of the banking system increased by EGP 762bn, or 14.9%, as a result of the increase in domestic credit by EGP 474.4bn, at a rate of 8.8%. The negative balance of net budget items decreased by EGP 278.6bn. The CBE explained that domestic credit increased due to an increase in net liabilities from the government by EGP 311.9bn, and liabilities from the private business sector by EGP 104bn, and from the household sector by EGP 65.8bn, and the decline in liabilities from the public business sector by EGP 7.3bn. The net foreign assets of the banking system decreased by EGP 242bn during that period, as a result of the decline in the net foreign assets of the banks by EGP 208.6bn, and the net foreign assets of CBE by EGP 33.4bn.
