Banking Sector
He also highlighted that this development is the outcome of the continuous communication and collaboration between the CBE and African central banks
The sector’s net foreign assets deficit has narrowed significantly, dropping to $130 million by September 2024, down from $17.6 billion in January.
Egypt could potentially see fresh funding from the African Export-Import Bank (Afreximbank) by the end of the year, according to explained Executive Vice President of Global Trade Bank of Africa at Afreximbank, Haytham El Maayergi, speaking to Asharq Business
According to Fitch, the exchange rate float on March 6, 2024, alongside substantial financing totaling $57 billion, bolstered forecasts for the sector
According to new data from the Central Bank of Egypt (CBE), cash balances held by banks operating in Egypt amounted to LE 109.394 billion in February, explained the CBE
He highlighted the detrimental effects of maintaining dual exchange rates, which lead to instability
These measures aim to ensure that the total grants and investments in securitization portfolios of the leasing companies do not surpass 5 percent of the bank's overall portfolio of loans and credit facilities
Identified as the real estate, tourism, fertilizers, fodder, rebar, cement, and ceramics sectors, the sectors were classified as “high risk of default” due to foreign currency shortages and high inflation
The NBE raised LE 7 billion and Banque Misr secured LE 4 billion
Earlier this year, the CBE had previously mentioned that it would impose fees on transactions made via the app in early 2024.
Individuals holding credit cards issued on or after December 21 will be required to wait a minimum of six months before engaging in FX transactions
The new service will be provided through the Digital Financial Identity Company, to which the Central Bank of Egypt contributes a 55 percent share of the company’s capital, which amounts to 500 million pounds.
The CBE is still studying whether remittances transferred via InstaPay will be credited to Egyptian accounts in local or foreign currency
MPED minister El-Said met with the bank’s executive team on Wednesday, reviewing several economic development files such as the National Program for Economic Reforms
According to CBE’s report, Egypt’s money supply, consisting of cash circulating outside the banking system and demand deposits in local currency, has risen to LE 2.097 trillion
The banking sector saw a record net foreign liability position of $14 billion at the end of March 2023, with Fitch writing that “banks' ability to build up foreign assets was hampered by tight FC liquidity and the sovereign's high gross external financing requirements”
The report also reveals that the total non-governmental deposits in local currency in banks increased to LE 5.614 trillion in March 2023, up from LE 5.411 trillion in December 2022, representing a growth rate of 3.8 percent
This confirms the ability of the banking sector to cover pending currency requests for importers as soon as possible.
The total investments of banks in securities and investments in treasury bills amounted to LE 3.549 trillion at the end of March 2022, compared to LE 3.324 trillion at the end of December 2021.
Moody's expects the Egyptian economy to grow 5.5 percent in the current fiscal year 2022-2021.
