Egypt's reserve money reaches LE 1.581 trillion: CBE

CAIRO - 16 October 2023: Egypt's reserve money (MO) has reached LE 1.581 trillion by the end of September 2023, according to a report issued by the Central Bank of Egypt (CBE). This marks an increase from LE 1.496 trillion recorded at the end of December 2022, reflecting a growth of LE 85 billion.

The report indicates that cash in circulation outside the Central Bank's treasury has risen to LE 1.071 trillion by the end of September 2023, compared to LE 886.2 billion at the end of December 2022.

Bank deposits in local currency have declined to LE 509.951 billion at the end of September 2023, down from LE 610.06 billion at the end of December 2022.

Reserve money, or MO, comprises cash in circulation outside the central bank's vaults and bank deposits in the local currency. It serves as one of the intermediate operational objectives of the CBE’s monetary policy in managing local liquidity.

The CBE employs reserve money as an intermediate operational objective in its monetary policy framework, allowing it to effectively manage domestic liquidity. By monitoring and adjusting reserve money levels, the CBE can influence money supply, interest rates, and inflation to maintain stability in the economy.