1165 billion pounds increase in deposits of Egyptians in banks since the liberalization of the exchange rate

Economy and stock exchange

The Central Bank of Egypt [CBE] disclosed that bank deposits recorded a significant increase of LE 1165 billion [LE 1.1 trillion] since the liberalization of the exchange rate until now, ie within two years and three months. At the end of November 2016, it recorded about LE 2.714 trillion, Trillion pounds at the end of February 2019.

At the top of the reasons for the increase in deposits, the Egyptian citizen's investment comes in times of economic slowdown, high inflation rates, and the use of surplus funds in safe and profitable investment sanctuaries to achieve a return that absorbs the inflationary effects of rising prices of goods and services. The high savings certificates of 16 and 20% contributed to the development of deposits of Egyptians in the banks during the past two years following the liberalization of the exchange rate.

The second reason for the increase in bank deposits is due to the end of the era of the black market of the currency following the decision to liberalize the exchange rate, and the operations of "dollarization" which means the transfer of deposits from the Egyptian pound to the dollar, as this challenge was the largest in light of the investor looking for the development of savings, Conversion of a large portion of dollar holdings into deposits in pounds.

The third reason is the confidence in the performance of the Egyptian banking sector in terms of capital rules. The Central Bank of Egypt conducted the banking reform program for the banks operating in Egypt, which started in 2004 and ended in 2008. After 10 years of the program, The privatization of the public sector banks financially and administratively, and the support of the supervision and supervision sector. The plan of development of the supervision and supervision sector in the Central Bank of Egypt was achieved through a program aimed at reducing the number of banks to 38 banks. To the development of the sector in the framework of supervisory and oversight is effective and efficient, and the ability to keep up with international standards and principles, and the shift control of the obligation to control the risks so as to ensure the strength and integrity of the banking sector.

Related topics

.