Egypt’s central bank reported on Wednesday a growth in the country’s reserve money (M0) to 1.502 trillion Egyptian pounds ($48.5 billion) at the end of this March from 1.496 trillion pounds as of December 2022.
Reserve money (M0) consists of currency in circulation outside the Central Bank of Egypt’s (CBE) vaults and banks’ deposits in local currency. The CBE uses reserve money (M0) as an intermediate operating target for its monetary policy in managing local liquidity.
Currency in circulation outside the CBE has also increased to 919.6 billion pounds at the end of March from 886.2 billion pounds at the end of December 2022, the CBE said in a recent report.
Meanwhile, banks’ deposits in Egyptian pound fell to 582.7 billion pounds in March 2023 from 610.06 billion pounds in December 2022, the report added.
Following is the size of the two components of reserve money as of 31 March 2023.
Total Reserve money is 1.502 trillion Egyptian pounds
| Reserve Money Components | Figures in EGP billion |
| (i) Currency in Circulation |
919672 |
| (ii) Banks’ deposits in local currency with CBE |
582742 |
| Total Reserve Money (i+ii) |
1502414 |
