Egypt’s monetary landscape has witnessed notable shifts, as recent data from the central bank highlights the trajectory of reserve money (MO) and its components.
As of July’s close, reserve money surged to 1.593 trillion Egyptian pounds ($51.568 billion), marking an ascent from its position at 1.496 trillion pounds in December 2022.
Reserve money encompasses currency in circulation beyond the confines of the Central Bank of Egypt’s vaults, coupled with banks’ deposits in the local currency. The central bank adeptly employs MO as an intermediate operational benchmark to steer its monetary policy and manage domestic liquidity.
Delineating the specific elements of reserve money, currency circulating outside the Central Bank’s premises expanded to 1.056 trillion pounds by July 2023, a marked rise from the 886.2 billion pounds noted in December 2022.
Total Reserve money is 1.559 trillion Egyptian pounds
| Reserve Money Components | Figures in EGP billion |
| (i) Currency in Circulation | 1056167 |
| (ii) Banks’ deposits in local currency with CBE | 537517 |
| Total Reserve Money (i+ii) | 1593684 |
Conversely, banks’ deposits in Egyptian pounds have undergone a notable decline, sliding to 537.5 billion pounds at the close of July 2023, down from the 610.06 billion pounds documented in December 2022.
These dynamic changes underscore the evolving monetary landscape in Egypt, influencing policy and liquidity management decisions. Stay tuned for further insights as Egypt’s financial landscape continues to evolve, impacting both domestic and international economic dynamics.
