Egyptian Money Supply M2 Climbs 23.7% YoY to April, NFA Falls

Egypt’s net foreign assets (NFA) fell by 14.8 billion Egyptian pounds in April, marking a slowdown in the outflow of funds that began in October.

Money supply stood at 6.41 trillion pounds ($345.93 billion), down from 5.18 trillion pounds in the same month last year.

NFAs fell to 234.4 billion pounds in April from 219.4 billion a month earlier, their seventh month of decline. NFAs were positive at 186.3 billion pounds at the end of September 2021, according to central bank data.

NFAs fell by 169.7 billion in March, their biggest drop since the outbreak of the coronavirus crisis in February 2020.

An outflow of foreign currency, triggered in part by investor unease following Russia’s invasion of Ukraine, was among the factors that prompted the central bank to devalue the pound by 14% on March 21.

NEA represents banking system assets owed by nonresidents less liabilities. Changes in their size represent the banking system’s net transactions with the foreign sector, including those of the central bank, according to the bank.

Any movement could represent changes in import or export flows, foreign portfolio outflows, foreign debt repayments, changes in the flow of workers’ remittances or a slowdown in tourism, the officials said. analysts.

($1 = 18.5300 Egyptian pounds)

(Reporting by Moataz Mohamed and Patrick Werr; Writing by Nadine Awadalla; Editing by Kirsten Donovan and Alison Williams)

About the author