The Central Bank of Egypt (CBE) revealed that foreign investment in Egyptian treasury bills (treasury bills) reached the equivalent of around EGP 349.9 billion in May 2021.
The latter figure is compared to the equivalent of around EGP 326.9 billion in April 2021.
In its monthly report released on Tuesday, the CBE said the total outstanding treasury bill balances stood at around EGP 1.554 billion in May. The figure reflects an increase of around EGP 21 billion, from the EGP 1.533 billion reported in April.
According to the CBE, investments by public sector banks in treasury bills amounted to around EGP 252.291 billion in May, compared to EGP 285.024 billion in April. At the same time, investments by private sector banks amounted to around EGP 344.790 billion in May, compared to EGP 337.7 billion in April.
Investments by specialized banks recorded EGP 30.468 billion in May, compared to EGP 31.562 billion in April. Investments by branches of foreign banks in Egypt amounted to EGP 46.801 billion in May 2021, compared to EGP 47.082 billion in April.
In another case, the CBE said net foreign assets increased by the equivalent of EGP 150.2 billion during the period from July 2020 to April 2021, to reach the equivalent of around 272,294 billion EGP.
He also said that the increase was due to the increase in net foreign holdings with banks, equivalent to EGP 88.5 billion. This was also driven by the rise in net foreign assets with the CBE, equivalent to EGP 61.7 billion.
He pointed out that the local assets of the Egyptian banking system increased over the same period by EGP 495 billion, or 11.2%. This is explained by the increase in domestic credit of EGP 414.1 billion, at the rate of 8.5%, and a decrease in the negative balance of net budgetary items of EGP 80.9 billion, at the rate of 18.8%.
The CBE said domestic credit increased due to: an increase in the government’s net liabilities of EGP 180.3 billion; from the private sector for EGP 140 billion; and the household sector by EGP 97.4 billion. There was also a decline in public sector commitments from companies of EGP 3.6 billion.