The Central Bank of Egypt (CBE) has earlier released the results of the Balance of Payments (BoP) for the period July-March FY2018/19. The overall balance has reverted back to the negative territory, registering at a deficit of USD351mn, as a net result of a 39% surge in Current Account deficit (CAD) simultaneously with shrinking Financial Account (FA) inflows. We find figures disappointing to say the least, but not surprising. This reflects the “typical” imbalances that we had referred to in our note back in January 2019. Below, we summarize our key observations on Egypt’s external sector performance.
For more details, please read the full report below.