Egypt\u2019s balance of Payment (BOP) recorded a surplus of $410.9 million in the first half of fiscal year 2019\/2020, compared to a deficit of $1.8 billion in the same period a year earlier, according to the Central Bank of Egypt (CBE).<\/p>\n
CBE clarified Monday that the current account deficit retreated by $ 684.4 million or 13 percent, to register $4.6 billion, compared to $5.3 billion, driven mainly by the decline in non-oil trade deficit, and the rise in unrequited current transfers.<\/p>\n
\u201cHowever, the reversal of the oil trade balance from a surplus to a deficit; the fall in the services surplus, and the rise in investment income deficit have limited the improvement seen in the current account deficit,\u201d it added.<\/p>\n
According to the statement, non-oil trade deficit fell by $1.4 billion to $18 billion, from $19.4 billion in a prior year.<\/p>\n
It clarified that non-oil exports rose $940.9 million, to $9.2 billion, compared to $8.3 billion in the same period of 2018\/2019. \u201cExports that registered increases were mainly gold; radio and TV transmitters and receivers; drugs, vaccines, serums and pharmaceuticals; and organic and inorganic compounds.\u201d<\/p>\n
As per non-oil imports, they retreated by $490.7 million to $27.2 billion, from $27.7 billion, principally imports of cast iron; wheat; spare parts and accessories of cars and tractors; and drugs.<\/p>\n
\u201cUnrequited current transfers moved up by $1.7 billion to $13.6 billion (from $12.0 billion) supported primarily by the 13.5 percentrise in workers\u2019 remittances,\u201d it added.<\/p>\n
Regarding Oil trade, CBE stated that oil trade balance ran a deficit of $ 733.3 million, compared to a surplus of $150.8 million) on the back of the decline in oil exports by $1 billion to $5 billion, from $6 billion, due to the drop in the exports of crude oil and oil products, despite the increase in the exports of natural gas.<\/p>\n
It added that the marginal decrease in oil imports by $79.7 million to $5.78 billion, from $5.86 billion), due to lower imports of oil products (as importation of natural gas has stopped starting from Q2 of FY 2018\/2019) and higher imports of crude oil.<\/p>\n
The statement noted that services surplus declined by $1 billion to $ 6.3 billion, from $7.3 billion.<\/p>\n
CBE attributed this decline to the retreat of travel surplus by $155.4 million to $5.3 billion, from $5.4 billion, due to the increase in both travel receipts (tourism revenues) by $459.7 million to $ 7.2 billion, and travel payments by $615.1 million to $2 billion. It also added that Suez Canal receipts rose by $103.8 million to $3 billion, from $ 2.9 billion.<\/p>\n
In addition, the bank said that transportation surplus (excl. Suez Canal) narrowed by $399 million to $298.6 million, from $ 697.6 million; and the deficit on government services and other services rose by $ 527.2 million to $2.3 billion, from $1.8 billion.<\/p>\n
\u201cInvestment income deficit widened by $571.1 million to $5.8 billion, from $ 5.2 billion), mainly on the back of the rise in investment income payments by $604.8 million to $ 6.3 billion, from $5.7 billion,\u201d it said.<\/p>\n
Capital and Financial Account<\/p>\n
The Central bank said that the capital and financial account recorded a net inflow of $ 5.2 billion, compared to $3.1 billion.<\/p>\n
It clarified that the inflows were driven by portfolio investment in Egypt, Total inflows of foreign direct investment, and net disbursements of medium- and long-term loans and facilities.<\/p>\n
\u201cPortfolio investment in Egypt recorded net inflows of $ 273.6 million (a reversal from the net outflows of $ 5.9 billion), despite the volatility of global financial markets, especially the emerging markets,\u201d it stated.<\/p>\n
It added that total inflows of FDI in Egypt moved up by $ 1.2 billion to $ 9.2 billion (from $ 8.0 billion). On the other hand, total outflows increased by $ 378.9 million to $ 4.2 billion (from US$ 3.8 billion).<\/p>\n
\u201cThis resulted in an increase in net FDI in Egypt by $ 773.8 million, to record a net inflow of $ 5.0 billion (against $ 4.2 billion), largely driven by the increase in net inflows for greenfield investments by $ 1.2 billion to $3.2 billion,\u201d it clarified.<\/p>\n
It added that net disbursements of medium- and long-term loans and facilities increased by $ 1.2 billion, to record net disbursements of $ 2.1 billion, compared to $872.3 million.<\/p>\n
Egypt Today <\/p>\n","protected":false},"excerpt":{"rendered":"
Egypt\u2019s balance of Payment (BOP) recorded a surplus of $410.9 million in the first half of fiscal year 2019\/2020, compared to a deficit of $1.8 billion in the same period a year earlier, according to the Central Bank of Egypt (CBE). CBE clarified Monday that the current account deficit retreated by $ 684.4 million or […]<\/p>\n","protected":false},"author":40,"featured_media":173883,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7863],"tags":[45360,12862,2484],"class_list":["post-173882","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-english-section","tag-bop","tag-cbe","tag-egypt"],"yoast_head":"\n