Funds in circulation outside Egypt-based banks fell to 9.4 percent of the country’s GDP in the first quarter of the year, central bank data showed on Sunday.
Currency in circulation outside banks (CIC) makes up one part of the Money Supply M1, which also includes currency issued, cash at banks and monetary deposits. Domestic liquidity (M2) consists of currency in circulation outside the banking system and non-government deposits at banks (in both local and foreign currencies).
The CIC decline as a share of local currency deposits in domestic liquidity (M2) accelerated after the floatation of the Egyptian pound in November 2016, to record in March this year “the lowest on record”, the central bank added.
“This suggests continued normalisation of currency holding behavior.” the central bank latest data read.