Egypt's BOP records deficit of $69.2M in Q1 of 20/21

CAIRO – 1 February 2021: Egypt’s overall balance of payment (BOP) registered a slight deficit of $ 69.2 million during the first quarter of 2020/2021, compared to a deficit of $ 3.5 billion in the preceding quarter (April/June 2020), and compared to a surplus of $ 227 million in the corresponding quarter (July/September 2019).

The central Bank of Egypt clarified that the current account deficit witnessed an improvement of 27.2 percent, compared to the preceding quarter (April/June 2020) to post $ 2.8 billion (against US$ 3.8 billion). 

“When compared to the corresponding quarter (July/Sept 2019), the current account deficit widened from just $ 1.4 billion, which is an expected temporary increase in the deficit due to the travel restrictions brought about by the pandemic, causing tourism sector to register US$ 0.8 billion (compared to $ 4.2 billion from the preceding corresponding quarter).” It added.

CBE added that net inflows channeled into capital and financial account increased to $ 3.9 billion compared to $ 1.3 billion in April/June 2020, and $ 657.9 million in July/September 2019. 

“This reflects the marked improvement in foreign portfolio investment in Egypt due to the easing in global financial conditions and the increased confidence of foreign investors in the Egyptian economy despite the continued global uncertainty caused by the COVID-19 pandemic,” it clarified.