By Mostafa Adel

Cairo – Mubasher: Egypt’s domestic liquidity and counterpart assets rose 39% year-on-year by the end of November, said the Central Bank of Egypt (CBE) in a statement on Monday.

Egypt’s banking liquidity was bolstered by the central bank’s decision to free float the local currency as well as issuing high-yield savings certificates, CBE added, revealing that domestic liquidity ticked EGP 2.6 trillion by the end of November, compared with EGP 1.87 trillion for the year-ago period.  

On a monthly basis, liquidity rose by EGP 406.6 billion to EGP 2.6 trillion from EGP 2.19 trillion a month earlier.

Foreign current deposits doubled to EGP 652.6 billion by the end of November from EGP 326.8 billion in October, while local deposits increased 6.4% to EGP 1.33 during the same period from EGP 1.25 trillion registered in October, according to the report.

“The high-yield savings certificate attracted a wide brackets of traders outside the non-formal economic circle”, an official in a an Egyptian bank told Mubasher, clarifying that the re-valuation of dollar-denominated deposits further contributed to the present y/y and m/m increase.”

The post-flotation exchange rate of US dollar moved higher 104% against the Egyptian pound from EGP 8.88 to EGP 18.16 a dollar.