central bank of egypt - الصفحة الرئيسية...economic review vol. 57 no. 1 2016/2017...

CENTRAL BANK OF EGYPT

ECONOMIC REVIEW

Vol. 57 No. 1

2016/2017

Economic Research Sector

The Economic Review is issued by the Economic Research Sector at the Central Bank of

Egypt (CBE) in Arabic and English languages. It aims to review the performance of the

Egyptian economy during the reporting period.

Contents Page Main Macroeconomic Indicators

1- Macroeconomic Developments

1/1 - Gross Domestic Product (GDP) …………………………………….. 1 1/2 - Labor Force, Employment and Unemployment................................... 5 1/3 - Inflation………………………………………………………………. 6 1/4 - Tourism………………………………………………………………. 10

2- Monetary and Banking Developments 2/1- Monetary and Banking Policy and Monetary Aggregates…………… 14

2/1/1- Monetary Policy……………………………………………………… 14 2/1/2- Reserve Money (M0)…………………………………………….…… 17 2/1/3- Domestic Liquidity (M2) and Counterpart Assets ………………….. 20 2/1/4- Payment Systems and Information Technology (IT) ………………. 24 2/1/5- RTGS and SWIFT Local Services …………………………………. 27 2/2- Banking and Credit Developments .…………….………………….. 29 2/2/1- Supervision Sector …………………………………………………… 29 2/2/2- Overview of the Aggregate Financial Position of Banks ……………. 33 2/2/3- Interbank Transactions ……………………………………………... 35 2/2/3/1- Transactions with Banks Abroad ……………………………………. 35 2/2/3/2- Interbank Transactions in Egypt …………………………………….. 36 2/2/4- Deposits ……………………………………………………………… 36 2/2/5- Lending Activity ……………………..………………………………. 38

3- Non-Banking Financial Sector 3/1- Stock Market….……….……………………………………………... 41 3/2- Mutual Funds…………………………………………………………. 44

4- Public Finance and Domestic Public Debt 4/1- Fiscal Operations of the State Budget……………………………...… 45 4/2- Domestic Public Debt …...………………………………………….. 53 4/2/1- Net Debt of the Government ………………………………………... 53 4/2/2- Net Debt of Public Economic Authorities …………………………… 55

4/2/3- Net Debt of the NIB………………………. ………………………... 55 4/2/4- Intra-Debt …………………………………………………………… 55

5 - External Transactions 5/1- Foreign Exchange Market and NIRs……........................................... 56

5/2- Balance of Payments………………………………………………… 58

5/2/1- Current Account ……….. …………………………………………... 60

5/2/1/1- Trade Balance ………………………………………………………. 60

5/2/1/2- Balance of Services………………………………………………….. 61

5/2/1/3- Investment Income Balance………………………...…………..…… 64

5/2/1/4- Net Unrequited Current Transfers ...………………..……………… 65

5/2/2- Capital and Financial Account………………………………………. 65

5/3 - Foreign Trade………………………………………………………. 68

5/3/1- Structure of Export Proceeds and Import Payments………………… 68

5/3/2- Sectoral Distribution of Merchandise Transactions………………… 71

5/3/3- Geographical Distribution of Merchandise Transactions ……………… 73

5/3/4- Breakdown of Trade by Main Merchandise Group…………………. 75

5/4- International Finance ………………………………………………… 76

5/4/1- Foreign Direct Investment (FDI) in Egypt …………………………… 77

5/4/2- External Official Grants …………………………..………………… 78

5/4/3- External Debt………………………………………………………... 80

Annex Statistical Section………………….………………………………………………. 85

Main Macroeconomic Indicators

GDP (LE bn) July/Sept.

2015/2016 2016/2017 Real GDP at Factor Cost 493.8 502.3 Annual Growth Rate (%) 3.1 1.7 Real GDP at Market Prices 496.8 513.9 Annual Growth Rate (%) 5.1 3.4 GDP at Current Market Prices 710.5 841.6 Annual Growth Rate (%) 9.8 18.5

Real GDP Growth Rate ( at Factor Cost) by Sector (%)

A) Commodity Sectors, of which:

Agriculture, Forests and Fishing 3.0 3.0 Extractions -2.4 -3.4 Manufacturing -1.7 -1.6 Construction & Building 9.2 8.2

B) Productive and Social Services Sectors, of which:

Wholesale and Retail Trade 5.2 5.0 Tourism -9.1 -37.5 Real Estate 4.6 4.7 General Government 9.9 5.7 Social Services 4.5 3.3

Price Indices (%) July/Sept.

2015/2016 2016/2017

Rate of change in Consumer Price Index (urban) (January 2010=100) 3.8 3.9

Rate of change in Producer Price Index (2004/2005=100) 1.0 4.4

Monetary and Credit Developments July/Sept. 2015/2016 2016/2017 End of Period

Growth rate of domestic liquidity (M2) % 4.8 4.2

Growth rate of time and saving deposits in local currency %

5.1 4.3

Growth rate of deposits in foreign currencies % 4.4 0.8

Foreign currency deposits/Total deposits (dollarization rate) % 17.8 18.0 Credit to the private business sector/Total credit % 21.5 19.9

Net claims on the government/Total credit % 66.2 68.1

Credit to the household sector/Total credit % 8.7 8.3

Credit to the public business sector/Total credit % 3.6 3.7

Change in credit to the private business sector/Change in total credit % 0.4 9.1 Change in net claims on the government/Change in total credit % 83.2 84.9 Change in credit to the household sector/Change in total credit % 6.0 4.4 Change in credit to the public business sector/Change in total credit % 10.4 1.6 Loans/Deposits with banks % 42.0 44.2

Investment in securities, TBs and equity participations/Deposits % 56.4 61.3 Net international reserves (US$ mn) at the end of the period 16335 19592 Number of months of merchandise imports covered by NIR 3.4 4.1

Annual Discount and Interest Rates (%) July/Sept.

2015/2016 2016/2017 End of Period

CBE Lending and Discount Rate 9.25 12.25

Interest Rates on Main Operations at the CBE*

Deposit Acceptance Operations at the CBE (7-days) 9.25 12.25

____________________________________ * According to the MPC press release dated 21/3/2013, the CBE main operations would be Repos or deposit auctions, depending on the prevailing market liquidity conditions.

Overnight Deposit and Lending Rates at the CBE Deposit 8.75 11.75 Lending 9.75 12.75 Deposits of More than One Month and Less than or equal to Three Months 6.80 8.10 One Year or Less Loans 11.60 13.90

US Dollar Exchange Rate Announced by the CBE

LE/Dollar

Buy and Sell Exchange Rates (Average of the Period) 7.728 8.780

End of the Period (Buy Rate) 7.8057 8.8574

Consolidated Fiscal Operations of the General Government (Budget Sector)

(Actual) July/Sept.

2015/2016 2016/2017 (LE bn)

Total Revenues 100.1 96.8

Total Expenditures 169.9 172.2

Cash Deficit/Surplus 69.8 75.4

Net Acquisition of Financial Assets 8.5 1.4

Overall Deficit/ Surplus

78.3 76.8

Total Finance 78.3 76.8

- Domestic Finance 138.2 00

Banking 104.2 00

Non-Banking 34.0 00

- External Borrowing -4.3 00

- Others -9.4 00

- Revaluation Differences 0.2 00 - Net Privatization Proceeds 0.0 00

- Difference between TBs Face and Present Value -1.2 00

- Discrepancy -45.2 00

- Cash Deficit (Surplus) / GDP (%) 2.5 2.3

- Overall Deficit (Surplus) / GDP (%) 2.8 2.4

- Revenues / GDP (%) 3.6 3.0

- Expenditures / GDP (%) 6.1 5.3

________________ 00 Not Available

Domestic Public Debt End of

June 2016 Sept. 2016 (LE bn)

Gross, due on: 2620.7 2758.0

- Government (net) 2285.7 2403.7 - Public Economic Authorities (net) 103.7 118.9 - NIB, Minus Intra-Debt (net) 231.3 235.4

External Debt End of June 2016 Sept. 2016

Gross External Debt (US$ bn) 55.8 60.2 External Debt/GDP % 18.1 16.3 Long-& Medium-term Debt/ External debt 87.4 86.8

Balance of Payments (US$ bn)

July/Sept. 2015/2016 2016/2017

Current Account (4.0) (5.0) Trade Balance (10.0) (8.7) Merchandise Exports 4.7 5.3

Oil and its Products % 35.1 29.0

Others % 64.9 71.0 Merchandise Imports 14.7 13.9

Intermediate Goods % 23.1 24.9 Investment Goods% 20.6 15.7

Consumer Goods % 24.4 25.5 Fuel, Raw Materials and Others % 31.9 33.9

Services Balance 2.8 1.4 Receipts, of which: 5.0 3.8

Transportation % 52.4 62.2 Travel % 34.2 20.1

Payments, of which: 2.2 2.4 Transportation % 17.3 13.0 Travel % 35.9 47.0

Investment Income Balance (1.1) (1.1) Receipts % 0.1 0.1 Payments % 1.2 1.2

Current Transfers 4.3 3.4 Official % 0.5 1.0

Private % 99.5 99.0 Capital and Financial Account 1.6 7.1 Overall Surplus/(Deficit) (3.7) 1.9

-1-

1- Macroeconomic Developments

1/1- Gross Domestic Product (GDP)

According to the data issued by the Ministry of Planning, Monitoring and Administrative Reform1, real GDP growth at factor cost slackened to 1.7 percent during Q1 of FY 2016/2017 from 3.1 percent in the corresponding quarter a year earlier. Likewise, real GDP at market prices scaled down from 5.1 percent to 3.4 percent.

Real GDP

Value (in LE bn) Rate of Change (%)

Q1 Q1 2015/16 2016/17 2015/16 2016/17

Real GDP at factor cost 493.8 502.3 3.1 1.7

Indirect taxes (net) 3.0 11.6 - - Real GDP at market prices 496.8 513.9 5.1 3.4

Source: Table (1/1) in the Statistical Annex. The base year is 2011/2012.

1 The Ministry of Planning, Monitoring, and Administrative Reform revised GDP estimates based on the

economic census for FY 2012/13 that was issued by the CAPMAS in December 2014 for the first time after a halt of 15 years. The economic census results helped to cover a larger number of enterprises as well as enabled access to new and actual sources of data. This, in turn, helped improve the estimates of the size of the informal sector. The results were also used to revise the GDP series for 2011/2012 – 2014/2015.

2.2 2.2

2.93.4

2.3

0.3 0.4

5.2

3.32.9

2.2 2.01.7 1.6 1.6

3.5

5.14.6

4.1

2.22.5

3.1

2.01.6

2.31.7

0

1

2

3

4

5

6

2011/2

012

2012/2

013

2013/2

014

2014/2

015

2015/2

016

July

/Sep

t.

Oct.

/Dec.

Jan./M

ar.

Apr.

/Ju

ne

July

/Sep

t.

Oct.

/Dec.

Jan./M

ar.

Apr.

/Ju

ne

July

/Sep

t.

Oct.

/Dec.

Jan./M

ar.

Apr.

/Ju

ne

July

/Sep

t.

Oct.

/Dec.

Jan./M

ar.

Apr.

/Ju

ne

July

/Sep

t.

Oct.

/Dec.

Jan./M

ar.

Apr.

/Ju

ne

2016/1

7 J

uly

/Sept.

2011/2012 2012/2013 2013/2014 2014/2015 2015/2016

Developments In Rates Of Change In Real GDP

(At Factor Cost)%

-2-

GDP (at factor cost and 2011/2012 prices)

On the supply side, real GDP at factor cost slowed down to only 1.7 percent during Q1 of FY 2016/2017, compared with 3.1 percent in the previous corresponding period. This was attributed to the lower contributions of tourism (-0.9 point against -0.2 point); the general government (0.5 point against 0.9 point); electricity (nil against 0.2 point); extractions (-0.4 point against -0.3 point); and Suez Canal (nil against 0.1 point). Add to this the higher contribution of communications sector to 0.3 point against 0.2 point. Meanwhile, the contributions of other sectors combined remained unchanged at 2.2 points.

As regards the private and public sectors' contributions to real GDP growth (1.74 percent) in Q1 of FY 2016/17, the former accounted for the largest share (1.66 percentage point) which is lower than that recorded in Q1 2015/16 (1.8 point). This came primarily as a combined result of the lower contribution of tourism sector (-0.9 point against -0.2 point) and the higher contribution of manufacturing sector (0.2 point against -0.4 point). Moreover, the contributions of other sectors combined remained unchanged at 2.4 percentage points in the period under review.

On the other hand, the share of public sector in real GDP growth significantly

decreased to 0.08 percentage point (against 1.29 point). This was mainly ascribed to the decline in the contributions of the manufacturing sector (-0.5 point against 0.1 point); the general government (0.5 point against 0.9 point); extractions (-0.3 point against -0.2 point); and Suez Canal (nil against 0.1 point). Meanwhile, the contributions of other sectors combined remained unchanged at 0.4 percentage point.

3 .0

-3.4 -1.6

2 .0 3 .2 8 .2 4 .7

11 .2 4 .6

-1.8

5 .0 4 .1 3 .8

-37.5

4 .7 5 .7 3 .3

-45

-35

-25

-15

-5

5

15

25

35

45

Agri

culture

, F

ore

sts

& F

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g

Extr

act

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s

Manufa

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Ele

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icity

Wate

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anita

tion

& R

ecyc

ling

Constru

ctio

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Build

ing

Tra

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Sto

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Com

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Info

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Sue

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Whole

sale

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eta

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Fin

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Socia

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Insura

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Tourism

Real E

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Gen

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t

Socia

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ices

%Rates Of Change In Real GDP during July/Sept.

(Annual Basis)

2016/2017 2015/2016

-3-

GDP by Expenditure (at 2011/2012 market prices)

On the demand side, the domestic demand (consumption and investment) continued to have the lion's share in real GDP growth at market prices (3.4 percent) in Q1 2016/17. Its contribution amounted to 3.8 points (against 7.2 points in the same quarter a year earlier). Meanwhile, the share of external demand (exports of goods and services less imports of goods and services) stood at negative 0.4 percentage point (against negative 2.1 points), as imports increased by 2.5 percent, outpacing as such the rise in exports (only 0.63 percent).

The share of domestic demand (3.8 percentage points) was due to the

contributions of both final consumption (government and private) that registered 2.0 percentage points (against 6.2 points) and capital formation (including change in stock) that reached 1.8 point (against 1.0 point).

Total investments (at current prices) augmented by 25.5 percent during Q1 of FY 2016/2017 (against 20.7 percent a year earlier), to register LE 98.0 billion (against LE 78.1 billion). The private sector implemented 69.2 percent of the total (against 65.7 percent), whereas the public sector implemented 30.8 percent (against 34.3 percent).

-2.1

-0.4

1.0

1.8

6.2

2.0

5.1

3.4

-3-2-101234567

July/Sept. 2015/2016 July/Sept. 2016/2017

Net Exports Capital Formation Final Consumption Real Growth Rate

(Percentage

point)

Contributions of Demand Side Categories in Real GDP Growth (at market price)

-4-

The relative distribution of total investments indicates that productive

services (transportation and storage; communications; information; Suez Canal; wholesale and retail trade; financial intermediation; social insurance and solidarity; and tourism) accounted for 29 percent; real estate (20.3 percent); extractions (15.4 percent); social services (education, health, and sanitation) (13.6 percent); and manufacturing (10 percent). Moreover, the contributions of agriculture, irrigation, reclamation; electricity; water and construction & building combined remained almost unchanged at 11.7 percent.

Growth Rates and Share of Demand Components

in Real GDP Growth at Market Prices

Growth Rates + (-)

Q1 (July/Sept.)

Share in Growth Rate

Q1 (July/Sept.)

2015/16 2016/17 2015/16 2016/17

(%) (Percentage Point)*

Real GDP Growth 5.1 3.4 5.1 3.4 1-Domestic Demand 6.7 3.5 7.2 3.8

A- Final Consumption 6.5 2.1 6.2 2.0

Private 6.6 2.1 5.6 1.8

Public 5.7 1.8 0.6 0.2 B- Capital Formation

(Including Change in Stock) 8.7 15.0 1.0 1.8 2- Net External Demand 30.7 4.7 -2.1 -0.4

A- Exports of Goods and Services (25.0) 0.6 -3.6 0.1

B- Imports of Goods and Services (6.8) 2.5 -1.4 0.5 Contributions of individual sectors may not sum to total growth due to rounding. Source: Growth rates are illustrated in Table (1/2) of the Statistical Annex. Contributions of demand components

are calculated by researchers.

-5-

1/2- Labor Force, Employment and Unemployment

According to CAPMAS quarterly Labor Force Sample Survey (LFS) for Q1(July/Sept. 2016/2017), the size of the labor force increased by 814.0 thousand persons or 2.9 percent (compared with Q1 of 2015/2016), to reach 28.8 million persons. Similarly, the number of employed persons mounted by 770.0 thousand or 3.2 percent, to stand at 25.2 million. The sector of agriculture and fishing continued to acquire the majority of the total number of employed persons (20.5 percent), followed by wholesale and retail trade (13.3 percent), construction and building (13.1 percent), manufacturing (12.6 percent), and education (8.1 percent).

Against this background, the number of unemployed persons remained unchanged at 3.6 million persons (the same figure of the period of comparison). As a result, the unemployment rate dropped to 12.6 percent of the total labor force (from 12.8 percent).

It is worthy to note that jobless males decreased from 9.3 percent to 8.7

percent, while jobless females rose from 24.9 percent to 25.9 percent. Data showed also that 88.4 percent of total jobless persons are holders of intermediate, above intermediate, university and post graduate degrees.

11.9

12.412.612.612.5

13.013.2

13.313.413.413.413.313.1

12.912.812.712.812.812.7

12.512.6

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

11.0

11.5

12.0

12.5

13.0

13.5

14.0

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2016

/20

17

Q1

2011/2012 2012/2013 2013/2014 2014/2015 2015/2016

Emp

loym

en

t an

d L

abo

r Fo

rce

(%

)

Un

em

plo

yme

nt R

ate

(%)

Developments of Labor Market Indicators

Unemployment Labor Force Employment

-6-

1/3 – Inflation A- Consumer Price Index (Urban)

According to the CAPMAS statistics, headline CPI inflation (urban) picked up by 3.9 percent in Q1 (July/Sept.) of FY 2016/2017 (against 3.8 percent in the same quarter a year earlier).

This slight increase in headline inflation was mainly due to the higher contributions of some groups, namely; clothing and footwear; restaurants and hotels; miscellaneous goods and services; housing, water, electricity, gas and fuel; transportation; and culture and recreation. These groups combined contributed a total of 1.6 percentage point (versus 0.7 point). Add to this the higher contribution of alcoholic beverages and tobacco (0.6 point against nil). However, the rise in inflation was held back by the decline in the contributions of food and beverages to 1.6 point (against 2.8 points) and healthcare (nil against 0.2 point), whereas the share of furnishings, household equipment and routine maintenance remained stable at 0.1 point.

The drop in the share of food and beverages from 2.8 points to 1.6 point came mainly on the back of the lower contributions of both vegetables (1.2 point against 2.8 points); and cereals and bread (negative 0.2 point against nil).

5.9

3.8

3.9

0

1

2

3

4

5

6

7

2014/2015 2015/2016 2016/2017

Annual Rates of Change in Headline Consumer Price Index (CPI) & Food and Non-Alcoholic Beverages (Urban) (Jan 2010=100)

July/Sept.

All Items Food and Non-Alcoholic Beverages

(%)

-7-

CPI Change Rates and Contributions of Main CPI Groups in Headline Inflation in the Periods of Review and Comparison

(Jan. 2010 = 100)

Main CPI Groups Relative Weight

Rates of Change (%) in

July/Sept.

Contributions in Headline Inflation (Percentage Point)

in July/Sept.

2015/2016 2016/2017 2015/2016 2016/2017

General Index 100.00 3.8 3.9 3.8 3.9 Food and non-alcoholic beverages

39.92

5.9

3.3

2.8

1.6

Housing, water, electricity, gas, and fuel

18.37

3.5

4.6

0.5

0.6

Healthcare 6.33 4.1 0.0 0.2 0.0

Transportation 5.68 0.4 3.3 0.0 0.1

Clothing and footwear 5.41 1.1 4.6 0.0 0.2

Education 4.63 0.0 0.0 0.0 0.0

Restaurants and hotels 4.43 2.5 5.9 0.1 0.3 Furnishings, household equipment and routine maintenance

3.77

2.4

2.8

0.1

0.1 Miscellaneous goods and services

3.72

0.4

9.3

0.0

0.2

Telecommunications 3.12 0.0 1.7 0.0 0.0

Culture and recreation 2.43 5.3 7.5 0.1 0.2 Alcoholic beverages and Tobacco

2.19

0.0

15.6

0.0

0.6

Source: For the rates of change in CPI groups: Table (1/3) in the Statistical Annex. For the Contributions of CPI groups: Economic Research Sector.

1 0- .

0 0.

1 0.

2 0.

3 0.

Bread &Cereals

Meat & Poultry Fish & SeaFood

Milk, Cheese &Eggs

Vegetables Non-AlcoholicBeverages

Contributions of Main Food Items to Annual Headline Inflation During

July/Sept.

2015/2016 2016/2017

Percentage Point

-8-

Regarding headline CPI (m/m), it remained almost unchanged at 1.3 percent on average during the periods of review and comparison, and recorded its highest level (1.9 percent) in August 2016.

B- Producer Price Index (PPI)

The headline PPI inflation rose by 4.4 percent in Q1 of 2016/2017 (against

1.0 percent in the same quarter a year earlier). That was traced to the higher contributions of manufacturing (2.0 points against 0.2 point); electricity, gas, steam, and air conditioning supplies (0.6 point against 0.2 point); and transportation and storage (0.2 point against nil). Moreover, the negative contribution of mining and quarrying improved (negative 0.1 point against negative 2.4 points). However, declines were observed in the contributions of agriculture and fishing (1.6 point against 2.7 points); and water supply, sanitation, and waste treatment and management (nil against 0.2 point). Meanwhile, the contribution of food services and accommodation remained stable at 0.1 point.

-2

-1

0

1

2

3

4

Sept2014

.

October

November

December

January2015

February

March

April

May

June

July

August

September

October

November

December

January2016

February

March

April

May

June

July

August

Sept2016

.

(%) Monthly Rate of Change in CPI (Urban)

2 8.

1 0.

4 4.

0.00.51.01.52.02.53.03.54.04.55.0

2014/2015 2015/2016 2016/2017

Annual Rate of Change in PPI (2004/2005=100) During the period July/Sept.

(%)

-9-

Rates of Change and Shares of PPI Groups in Headline Inflation

during the Periods of Review and Comparison

Main PPI Groups Relative

Weight

Change Rates +(-)

in

July/Sept.

Share in Headline Inflation

in

July/Sept.

2015/2016 2016/2017 2015/2016 2016/2017

% (Percentage Point)

General Index 100.0 1.0 4.4 1.0 4.4

Manufacturing 38.9 0.6 5.2 0.2 2.0

Agriculture and fishing 25.1 7.3 4.0 2.7 1.6

Mining and quarrying 21.8 (17.7) (1.3) -2.4 -0.1 Food services and accommodation

5.0

1.8

4.5

0.1

0.1

Transportation and storage

2.8

2.2

11.4

0.0

0.2

Electricity, gas, steam, and air conditioning supplies

2.3

6.3

20.5

0.2

0.6 IT and Communications

2.1

0.0

0.0

0.0

0.0

Water supply, sanitation, and waste treatment and management

2.0

9.3

0.0

0.2

0.0

-10-

1/4- Tourism

The statistics issued by the Central Agency for Public Mobilization and

Statistics (CAPMAS) showed a decline in both the number of arrivals and the number of tourist nights by departure. In detail, the number of arrivals decreased by 42.7 percent, to just 1.5 million in Q1 (July/Sept.) of FY 2016/2017, compared with 2.6 million in Q1 of the previous FY.

The number of tourist nights by departure fell by 61.3 percent to 9.2 million (compared with 23.7 million). Accordingly, the average length of stay decreased to 6.0 nights from 9.0 nights. However, the average tourist spending per night rose from US$ 72.7 to US$ 82.5.

chart

Against this background, tourism revenues remarkably decreased in Q1 2016/2017 by 56.1 percent, to just US$ 0.8 billion (representing 6.1 percent of total current receipts, including net private transfers), compared to US$ 1.7 billion (or 12.3 percent) in the same quarter a year earlier.

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2014/2015 2015/2016 2016/2017

0

5

10

15

20

25

30

Mil

lio

n T

ou

rist

s

Mil

lio

n N

igh

ts

Numbers of Tourists and Tourist Nights in July/Sept.

Number of Tourists Number of Tourist Nights

-11-

Moreover, investments in tourism sector accounted for LE 1.4 billion or 1.5

percent of total investments in Q1 of 2016/2017 (compared to LE 1.3 billion).

Tourism Indicators

Q1 (July/Sept.) Growth

Rate (%)

+ (-) 2015/2016 2016/2017

Number of arrivals (000s) 2629 1505 (42.7)

Number of tourist nights by departure (000s) 23735 9190 (61.3)

Tourism revenues (US$ mn) 1725.5 758.2 (56.1)

Tourism revenues/ Total current receipts including

net private transfers (%) 12.3 6.1

Investments in tourism sector/ Total investments (%) 1.6 1.5

Average spending per tourist a night (US$) 72.7 82.5 13.5

Average length of stay (night) 9.0 6.1 (32.7) Source: CAPMAS, the Ministry of Planning, Monitoring and Administrative Reform, and the Ministry of

Tourism

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2014/2015 2015/2016 2016/2017

0.0

1.0

2.0

3.0

4.0

5.0

Tourism Revenues in July/Sept.

Tourism Revenues (US$ bn)Tourism Revenues/Total Current Receipts including Net Private Transfers (%)

% Billion Dollar

-12-

1-Number of Arrivals:

Total arrivals markedly declined by 42.7 percent or 1124 thousand tourists in Q1 (July/ Sept. 2016/2017), to only 1.5 million. Such a drop was mainly ascribed to the decline in the number of arrivals from European countries by 66.7 percent to 0.6 million or 42.3 percent of total arrivals (against 1.9 million or 72.8 percent in the same quarter a year earlier). Likewise, the number of arrivals from the Americas and other countries fell by 12.9 percent, to 78 thousand tourists (or 5.2 percent of total tourists). Such a decline was held back by the rise of 26.4 percent or 165 thousand tourists in the number of arrivals from the Middle East, Africa, and Asia and the Pacific, to stand at 790 thousand tourists or 52.5 percent of total arrivals (against 625 thousand tourists).

Number of Arrivals

Q1 (July/Sept.) Change +(-) 2015/2016 2016/2017

No. (000s)

Relative Weight

No. (000s)

Relative Weight

No. (000s)

Growth Rate (%)

Total 2629 100.0 1505 100.0 (1124) (42.7)

Europe 1914 72.8 637 42.3 (1277) (66.7) Middle East 441 16.8 551 36.6 110 24.9 Africa 107 4.1 142 9.5 35 33.1 The Americas 84 3.2 74 4.9 (10) (11.3) Asia and the Pacific 77 2.9 97 6.4 20 24.6 Others 6 0.2 4 0.3 (2) (34.0)

2- Tourist Nights by Departure:

Along the same lines, the number of tourist nights by departure decreased by 14.5 million or 61.3 percent to reach 9.2 million. This noticeable decline was mainly attributed to the drop in the number of tourist nights by departure from the European countries by 13.8 million or 79.6 percent, to merely 3.5 million in the quarter under review (against 17.3 million). Similarly, the number of tourist nights for the remaining geographical groups declined by 0.8 million or 11.9 percent to 5.7 million (against 6.4 million).

Geographical Distribution of Tourist Flows

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Number of Tourist Nights by Departure

Q1(July/Sept.)

Change + (-) 2015/2016 2016/2017

No. (000s)

Relative Weight

No. (000s)

Relative Weight

No. (000s)

Growth Rate (%)

Total 23735 100.0 9190 100.0 (14545) (61.3)

Europe 17299 72.9 3522 38.3 (13777) (79.6)

Middle East 4144 17.5 3861 42.0 (283) (6.8)

Africa 1008 4.1 860 9.4 (148) (14.7)

The Americas 750 3.2 549 6.0 (201) (26.8)

Asia and the Pacific 519 2.2 391 4.2 (128) (24.6)

Others 15 0.1 7 0.1 (8) (52.6)

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2- Monetary and Banking Developments

2/1- Monetary and Banking Policy and Monetary Aggregates

2/1/1- Monetary Policy

As the ultimate objective of the monetary policy is price stability, the CBE

seeks to bring inflation to an appropriate and stable level conducive to building confidence, stimulating investment and achieving the targeted economic growth.

The overnight interbank interest rate is considered the operational target of the monetary policy, whereby a framework based on the corridor system is applied, within which the ceiling is the overnight interest rate on lending from the Central Bank, and the floor is the overnight deposit interest rate at the Bank. Below are the monetary policy decisions taken in July/September 2016/2017:

The MPC's decisions in its periodic meetings during Q1 of FY 2016/2017 were consistent with inflation developments and the MPC's inflationary pressure forecasts. The seasonal changes in prices were mainly associated with the Eid festivities and the higher prices of regulated items (goods and services), primarily electricity, under the measures taken to reform public finance. The pass-through from previous exchange rate movements to domestic prices as measured by the consumer price index remained limited. As a result, the Committee decided in its two meetings held on 28 July and 22 September 2016 to keep the overnight deposit and lending rates unchanged at 11.75 percent and 12.75 percent, respectively. Also the CBE's main operations (repos or deposit auctions, depending on market liquidity conditions) and the CBE's discount rate remained unchanged at 12.25 percent, each.

Out of its keenness to shore up confidence in the Egyptian economy and

achieve monetary stability by targeting lower levels of inflation, the CBE decided on November 3, 2016 (at the time of preparing this Review) to embark on several measures to adjust the foreign currency trading policy through liberalizing the exchange rates. According to this decision, banks are at liberty to quote and trade at any exchange rate. The decision came in line with a broader package of reforms that will ensure macroeconomic stability through fiscal consolidation as announced by the government and is intended to restore FX trading to formal banking channels and eliminate the parallel market. This can

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be achieved by completing the subsidy reform program, rationalizing government spending, reducing imports especially random imports, increasing exports, and encouraging firmly implemented domestic investment. By doing so, the government aims - through the fiscal and monetary package of reforms- to enable the Egyptian economy to address the longstanding challenges, unleash its vast potentials, and achieve the aspired growth and employment rates according to Egypt's human, natural and physical resources. In this regard, the CBE has taken the following decisions:

1. Giving banks operating in Egypt the liberty to quote and trade at any exchange rate through reactivating the interbank mechanism.

2. Raising the overnight deposit and lending rates by 300 basis points to 14.75 percent and 15.75 percent, respectively. The rate of the CBE's main operations and the discount rate were also raised by 300 bps to 15.25 percent and 15.25 percent, in order.

The MPC decided in its third and fourth meetings dated 17 November and

29 December 2016 (at the time of preparing this Review) to keep the main interest rates unchanged.

The following are the key developments that took place during the

period under review:- First: Interest Rates: 1- Overnight Interbank Interest Rates

The MPC's decisions in the period in question affected the overnight

interbank interest rates. Given the continuous increase in liquidity levels at the banking system, the weighted average of the overnight interbank interest rate moved close to the corridor floor rate, as illustrated in the following chart:

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2- Interest Rates on LE Loans and Deposits

The MPC's decisions also affected the interest rates in the money market that trended upwards as shown in the following table:

Weighted Average Interest Rate

Month June 2016

(%) September 2016

(%) Deposits

More than one month and up to three months 7.5 8.1

More than three months and up to six months 8.2 8.6

More than six months and up to one year 8.9 9.2 Loans*

For one year or less 13.4 13.9 * The interest rate on corporate loans after the application of Domestic Money Monitoring System (DMMS). Second: Open Market Operations

In July/September 2016/2017, there was a noticeable rise in the average liquidity absorbed by the CBE via its monetary policy instruments (the overnight deposit operations and the 7- day deposit acceptance operations) thereby posting LE 189.5 billion at the end of September 2016.

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The rise in liquidity; the short maturity of 7-day deposit acceptance operations; and the new procedures adopted as of 3 November 2016 highlighted the need for adopting a more tightening monetary policy for excess liquidity to increase the effectiveness of liquidity management and prevent FX speculations especially given the high volume of excess liquidity. In this context, some adjustments were made to the current operational structure of the monetary policy, to include longer-term deposit acceptance operations. Hence, an operational structure for operations with maturities ranging between 28, 56, 112, and 210 days was implemented to avoid any conflict with the maturities of issued treasury bonds and bills.

2/1/2- Reserve Money (M0)

Reserve money is considered the base of money in its broader definition and

is also known as the monetary base or high-powered money. It is composed of money in circulation outside the CBE and local currency deposits of banks therewith. The counterpart assets of reserve money are made up of the CBE's net foreign assets and net domestic assets. The latter includes net claims on both the government and banks, and net balancing items.

At the end of Sept. 2016, reserve money reached LE 508.2 billion, up by LE 30.1 billion or 6.3 percent during July/Sept. 2016/2017 (against a retreat of LE 61.4 billion or 12.6 percent in the previous corresponding period). The rise in reserve money was reflected in the pickup in both currency in circulation outside the CBE by LE 25.2 billion or 6.9 percent, to LE 393.7 billion or 77.5 percent of reserve money; and banks' local currency deposits at the CBE by LE 4.9 billion or 4.4 percent, to LE 114.5 billion at end of Sept. 2016.

0.3 (16.1)

1.0

2.5 3.55.3

(20.0)

(15.0)

(10.0)

(5.0)

0.0

5.0

10.0

2014/2015 2015/2016 2016/2017

%

Contribution of the Components of Reserve Money to its Change During July/Sept.

Bank's deposits in local currency Currency in circulation outside the CBE

Growth rate of resrve money

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Reserve Money and Counterpart Assets*

(LE mn)

Balances

at end of Sept. 2016

Change during July/Sept. + (-) 2015/2016 2016/2017

Value % Value % A- Reserve Money 508167 (61445) (12.6) 30091 6.3 - Currency in circulation

outside the CBE 393701 16839 5.4 25242 6.9 - Banks' local currency

deposits 114466 (78284) (45.4) 4849 4.4 B- Counterpart Assets 508167 (61445) (12.6) 30091 6.3 Net Foreign Assets -57186 (29771) (117.8) (12323) 27.5 Foreign assets 167856 (25305) (17.1) 17913 11.9 Foreign liabilities 225042 4466 3.6 30236 15.5 Net Domestic Assets 565353 (31674) (6.9) 42414 8.1 Net claims on government 668145 72873 13.9 48735 7.9 Net claims on banks 87607 29854 (113.4) 27986 46.9 Net balancing items -190399 (134401) 363.6 (34307) 22.0

* Derived from the CBE's balance sheet.

The breakdown of currency in circulation by denomination revealed a rise in the relative importance of the LE 200 note from 52.6 percent at end of June 2016 to 53.2 percent at end of Sept. and that of the LE 100 note from 35.9 percent to 36.0 percent. Conversely, the relative importance of the LE 50 note retreated to 7.4 percent (from 7.9 percent), and that of the medium denominations (LE 5, 10, and 20) to 2.9 percent (from 3.1 percent). As a result, average value of the note increased to LE 59.41 at end of September 2016 (from LE 57.78 at end of June).

The pickup in currency in circulation outside the CBE was a reflection of the

increase in banknote issue by LE 25.9 billion or 7.0 percent in July/September 2016/2017, to LE 395.2 billion at end of September 2016 or 12.18 percent of GDP for FY 2016/2017. Components of the note issue cover at end of September 2016 ran as follows: gold made up LE 24.0 billion worth or 6.1 percent, Egyptian government bonds LE 227.4 billion or 57.5 percent, and foreign currencies and notes LE 143.8 billion worth or 36.4 percent. It is worthy to note that the available issue cover in the CBE's financial statement recorded LE 558.7 billion (1.41 times coverage rate) on 30 September 2016, against LE 554.1 billion and 1.47 times at end of June.

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Regarding the counterpart assets of reserve money, net domestic assets increased by LE 42.4 billion, contributing 8.9 percentage points to the reserve money growth. Meanwhile, net foreign assets decreased by LE 12.3 billion worth, mitigating as such the growth in reserve money by 2.6 percentage points.

The increase in net domestic assets at the CBE during the reporting period

came on the back of the following developments:-

The rise in the CBE's net claims on the government by LE 48.7 billion or 7.9 percent due to the increase in the CBE's claims on the government by LE 19.8 billion, and the retreat in the government's deposits at the CBE by LE 28.9 billion.

The pickup in the CBE's net claims on banks by LE 28.0 billion as a result of the increase in the CBE's claims on banks by LE 26.3 billion, and the retreat in their foreign currency deposits at the CBE by LE 1.7 billion worth.

The LE 34.3 billion surge in the negative balance of net balancing items causing as such a contractionary effect on reserve money. This was an outcome of the rise in deposits accepted by the CBE by LE 51.0 billion, on the one hand, and the growth in other assets and liabilities (net) by LE 16.7 billion, on the other.

0100200300400500600700800900

June 2015 Sept. 2015 June 2016 Sept. 2016

LE bn

Net claims on government and its components

Claims on government Deposits Net claims on government

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In the meantime, net foreign assets at the CBE rolled back by LE 12.3

billion worth during the period under review as a result of the rise in both foreign liabilities at the CBE by LE 30.2 billion worth or 15.5 percent, as well as foreign assets by LE 17.9 billion worth or 11.9 percent.

2/1/3 – Domestic Liquidity (M2) and Counterpart Assets

Domestic liquidity (M2) consists of currency in circulation outside the banking system and non-government deposits at banks (in both local and foreign currencies). In July/Sept. 2016/2017, domestic liquidity grew by LE 88.6 billion or 4.2 percent, against LE 84.8 billion or 4.8 percent in the same period a year earlier. This brought total domestic liquidity to LE 2183.1 billion at end of September 2016 or 67.3 percent of GDP in FY 2016/2017.

The pickup in domestic liquidity during the reporting period reflected the

growth in both money supply and quasi-money. Money supply rose by LE 34.2 billion or 6.0 percent (compared with LE 22.2 billion or 4.5 percent in the previous corresponding period), reaching LE 607.1 billion at end of September 2016. The increase in money supply during July/Sept. 2016/2017 was attributable to the pickup in both currency in circulation outside the banking system by LE 23.3 billion or 6.7 percent to LE 370.1 billion at end of Sept. 2016; and local currency demand deposits at banks by LE 10.9 billion or 4.8 percent. The latter was a result of the rise in the deposits of the private business sector by LE 8.4 billion (6.5 percent) to LE 138.3 billion, and those of the household sector by LE 3.4 billion or 4.4 percent to LE 80.3 billion. Meanwhile, deposits of the public business sector retreated by LE 1.1 billion (5.4 percent) to LE 19.5 billion.

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Quasi-money augmented by LE 54.4 billion or 3.6 percent to LE 1576.0 billion at end of September 2016 (against LE 62.6 billion or 4.9 percent in the previous corresponding period). Such an increase comes on the back of the following developments:-

The rise in LE time and saving deposits by LE 51.9 billion or 4.3 percent, to

LE 1249.6 billion at end of September 2016. This was ascribed to the pickup in the deposits of the household sector by LE 36.0 billion or 3.5 percent, to LE 1075.4 billion; those of the private business sector by LE 15.8 billion or 11.7 percent, to LE 151.0 billion; and those of the public business sector by LE 0.2 billion or 0.7 percent, to LE 23.2 billion.

The pickup in foreign currency deposits by LE 2.5 billion worth or 0.8 percent (against a rise of LE 11.5 billion worth or 4.4 percent) to LE 326.3 billion worth. This was a result of the increase in the deposits of the household sector by LE 5.5 billion worth; as well as the decline in the deposits of both the private business sector by LE 2.4 billion worth, and the public business sector by LE 0.6 billion worth. In the meantime, the ratio of foreign currency deposits to total deposits at banks (dollarization rate) reached 18.0 percent at the end of September 2016 (against 18.5 percent at the end of June 2016).

Regarding the contribution of the counterpart assets of domestic liquidity to

its growth, net domestic assets positively contributed 5.4 percentage points, while net foreign assets made a negative contribution of 1.2 percentage point.

5.0

10.0

15.0

20.0

25.0

30.0

35.0

0.01.02.03.04.05.06.07.08.09.0(%) (%)

Dollarization Rate (Deposits inUS$/Total Deposits)&Interest Rate on Deposits in LE & US$

Interest Rate on 3-month Deposits in LE(Left axe)

Interest Rate on 3-month Deposits in US$ (Left axe)

Dollarization Rate (right axe)

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The increase in net domestic assets during the period reached LE 113.0 billion or 5.2 percent to LE 2294.9 billion at the end of September 2016. This was mainly attributed to the rise in banks' domestic credit by LE 124.7 billion or 5.1 percent to LE 2584.8 billion at the end of September 2016. Add to this the pickup in the negative balance of net balancing items by LE 11.7 billion or 4.2 percent (as capital accounts augmented by LE 28.0 billion, and net unclassified assets and liabilities rose by LE 16.3 billion).

The rise in domestic credit in the reporting period was attributed to the

following developments:- Net credit to the government from the banking system surged by LE 105.9

billion or 6.4 percent in July/September 2016/2017 (against a rise of LE 93.6 billion or 7.2 percent in the same period a year earlier), to LE 1760.8 billion, representing as such 68.1 percent of total credit at end of Sept. 2016. The

(0.1)

(2.3)(1.2)

1.1

6.4 6.0

0.8 0.7

(0.6)

1.84.8

4.2

(3)(2)(1)01234567

2014/2015 2015/2016 2016/2017

Percentage point

Domestic Liquidity Growth by Counterpart Assets During July/Sept.

Net Foreign Assets Domestic Credit Assets

Net Balancing items Domestic Liquidity Growth Rate

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surge was a dual effect of the rise in both banks’ holdings of government securities and TBs by LE 57.7 billion and loans to the government by LE 32.4 billion; and of the decline in government deposits at the banking system by LE 15.8 billion.

Credit to the private business sector grew during the period by LE 11.3 billion or 2.2 percent (against an increase of LE 0.5 billion or 0.1 percent to LE 515.6 billion or 19.9 percent of total domestic credit at the end of September 2016.

Credit to the household sector augmented by LE 5.5 billion or 2.6 percent (against LE 6.8 billion or 3.9 percent) to LE 213.4 billion at end of September 2016.

Credit to the public business sector rose by LE 2.0 billion or 2.2 percent (against LE 11.7 billion or 18.5 percent) to LE 95.0 billion at end of September 2016. Net foreign assets at the banking system (expressed in LE) reached a

negative LE 111.8 billion at end of September 2016, down by LE 24.4 billion in July/September 2016/2017 (against a retreat of LE 41.0 billion in the same period a year earlier). The decrease was brought about by the decline in net foreign assets at the CBE by LE 12.3 billion, and banks by LE 12.1 billion.

Change in Foreign Assets & Liabilities at the Banking System

(LE mn)

Change during July/Sept. + (-) 2015/2016 2016/2017

Value Growth Rate (%)

Value Growth Rate (%)

Net Foreign Assets at the Banking System (40985) (79.6) (24442) 28.0

Net Foreign Assets at the CBE (29771) (117.8) (12323) 27.5

- Assets (25305) (17.1) 17913 11.9

- Liabilities 4466 3.6 30236 15.5

Net Foreign Assets at Banks (11214) (42.8) (12119) 28.5

- Assets (4450) (5.2) 1828 2.2

- Liabilities 6764 11.3 13947 11.2

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2/1/4 - Payment Systems and Information Technology (IT)

The payment systems and information technology sector witnessed a number of achievements in July/Sept. 2016/2017. The most important of which are the following:

The CBE has decided on the company that will establish the permanent Disaster Recovery (DR) site for the CBE, to be functional in emergencies as a substitute for the main Information Center in El-Gomhoreya Building. This is intended to guarantee the continuity of the service. The company was selected via a limited bid. The plot of land has been already delivered to the company, and the project is currently under construction according to the set plan.

Under the plan of developing and upgrading the payment systems and IT sector, the CBE's BoD agreed on Dec. 17, 2015 to entrust the National Defense Council with implementing the project of “developing and upgrading the main Information Center in El-Gomhoreya Building” and readjusting its infrastructure to meet the work requirements of the CBE and banking sector. Within this context, requirements have been thoroughly identified, technical and financial tenders presented by the Defense Council have been reviewed, and contracts have been concluded.

Banks providing e-banking services have identified the gaps and submitted a corrective plan to adjust their conditions. The e-banking regulations of each bank have been already recorded and analyzed to enable the CBE to take the necessary measures against non-compliant banks or banks that request approval to add new services. Such measures guarantee the continuity, efficiency and safety of e-banking services provided to customers by the Egyptian banking sector.

The automation of all operations was completed in the three branches of the Bank (Alexandria, Port Said and El- Mohandeseen). These branches have already been connected to the Head office and are being operated via the same electronic systems applied in Cairo branch and the Head office. A Human Resources Management System (HRMS) is currently applied in these branches.

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A gap analysis of the IT infrastructure of archives and microfilm was completed. Accordingly, the work methods were modernized and a new work-procedures manual was approved. Moreover, a scientific reference for archiving and microfilming (including reviewing quality requirements and retention periods for paper and microfilm documents) is under approval. The archive and microfilming system was developed through a digital to microfilm conversion project. A digital archive will be maintained for internal retrieval. In addition, the paper archive platforms will be developed, and an alternative microfilms library will be established at the archives of the Printing Press.

As four major banks; namely the National Bank of Egypt, Banque Misr, Banque du Caire and Alex Bank, along with their branches in governorates, are entrusted, under an agreement with the CBE, with exercising government finance activities (e.g., payment of cheques drawn on the CBE - receipts on behalf of the CBE), signatures of governmental authorities' representatives, as well as any other authorized signatories, were uploaded on the electronic systems of these banks. Accordingly, government signature forms were copied and sent to the said financing banks via “the Secure FTP Server”. The server allows for the easy transfer of these signatures to banks' internal information systems for inquiry purpose. This project has been tested in the stage of parallel operation in preparation for the actual operation of the new system.

The CBE is currently gearing to join the Regional Payment and Settlement System (REPSS) run by the COMESA Clearing House. This system aims at enhancing trade exchange with the COMESA countries, being crucial for the national security of Egypt. At present, the required technical systems are being prepared and the relevant CBE's internal rules and procedures are being examined.

The CBE is working on fostering financial inclusion by enhancing access to simple banking services. An example of these services is the mobile wallet, whose users exceeded five and half million persons. The CBE aims at widening access to this service for all society segments, especially the underprivileged. At present, some final amendments to the rules regulating this service are being introduced.

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Establishing a system of central securities depository for government-issued securities (CSD), a collateral management system (CMS), an auction system, and an electronic trading platform for government securities, in cooperation with the European Bank for Reconstruction and Development and the African Development Bank. The project aims at establishing a clearing and central depository system to replace the current Book Entry System, and an auction system to replace the system currently in operation, in addition to an e-trading platform and a collateral management system. Contracts related to the grant were concluded with the two said banks. Also, a Prequalification Document for suppliers was issued and the committee in charge is in the final stage of selecting potential suppliers.

The CBE is upgrading the current version of RTGS in Egyptian pound. Related software is being modified and upgraded, as a step towards the actual implementation of the project.

The SWIFT software will be changed from Turbo to Alliance system. Proposals of specialized companies in this regard are currently examined.

The CBE has tightened control over import operations through automating Form 4, for commodity imports, and linking it with both the Customs Authority and banks via an electronic system that is consistent with the CBE’s information security standards. The electronic version of the Form shall be available at the Customs Authority. The said Authority will enter the actual assessment of any released consignment as well as the commodity classification of its items. The following steps have been implemented:

The CBE assigned the Egyptian Banks Company, which manages the National Switch Network and connects all banks operating in Egypt, to create the required electronic system.

The Company has already designed and tested the new system and all banks have completed the related training.

The project parallel operation has started as of April 20th, 2016 to date.

A daily follow-up is conducted with banks, the Egyptian Banks Company and the Customs Authority to ensure the functioning of the system and to address any problems appropriately in due time.

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The CBE has completed the preparation of the system of the SMEs financing initiative, which aims at funding new machinery and equipment for industrial purposes. The system testing is being carried out before the actual operation.

The CBE is revamping its branches in Alexandria and Port Said, in participation with all sectors of the CBE and the project consultant as well. All technical requirements have been specified and taken into account while preparing the engineering drawings.

The CBE is upgrading its telephony communication network in the Head

office and connecting it with some branches, to overcome the incompatible

properties of the aging PBX phone system.

2/1/5- RTGS and SWIFT Local Services

Local bank transfers in Egyptian pound under the RTGS showed an increase in the number and value of executed messages to 265.9 thousand in July/September 2016/2017 (from 257.4 thousand in the corresponding period a year earlier). Their value also increased to LE 8263.0 billion (from LE 7302.0 billion). Notably, such transactions included transfers of banks and clients and transactions of treasury bills, Misr for Central Clearing, Depository and Registry (MCDR), and the National Debit Switch, in addition to corridor operations and deposits for monetary policy purposes.

RTGS and SWIFT Local Services (in Local Currency)

During July/Sept.

Number of Messages

(Unit)

Value of Transfers

(LE bn)

Change during the Period + (-)

Number Value

2014/2015 245357 5319 (11455) 1765 2015/2016 257403 7302 12046 1983 2016/2017 265910 8263 8507 961

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According to the statistics of the CBE Automated Clearing House that applies the RTGS system, the number of exchanged papers reached 3.1 million at a value of LE 272.0 billion (against 3.3 million at a value of LE 265.0 billion). As a result, the average value per paper moved up to LE 86.9 thousand (from LE 80.5 thousand).

CBE Automated Clearing House Activity

During July/Sept.

Number of Papers

(Thousand)

Value of Papers (LE bn)

Change (%)

Number Value 2014/2015 3226 226 6.3 26.6 2015/2016 3289 265 2.0 17.3 2016/2017 3130 272 (4.8) 2.6

Transactions executed in foreign currencies under the Fin-Copy system, via SWIFT, revealed a sharp decline in their number and value during the period under review. Specifically, their number decreased to 319, at a value of US$ 341 million, against 1.1 thousand, at a value of US$ 1.3 billion in the corresponding period a year earlier.

SWIFT Local Services

(in US Dollar)

During July/Sept.

Number of Messages

(Unit)

Value of Transfers (US$ mn)

Change during the Period + (-)

Number Value

2014/2015 1146 1371 (97) (1050) 2015/2016 1116 1252 (30) (119) 2016/2017 319 341 (797) (911)

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2/2- Banking and Credit Developments

2/2/1- Supervision Sector

The CBE conducts supervision over banks operating in Egypt to ensure their sound financial positions and evaluate their performance from the perspective of risk based supervision. In addition, it ascertains banks’ compliance with the CBE established regulatory standards, including the minimum reserve require-ment and liquidity ratios, the maximum limits of a bank’s concentration of investments with a single customer, along with his related parties, and investments abroad, as well as the asset-liability matching in terms of maturity and currency. This is in addition to a number of qualitative standards that ensure – alongside the above – the soundness of banks’ performance and the safety of depositors’ funds. Among these standards are governance rules; information systems efficiency rules; and ''Fit and proper'' criteria for officials and managers of key sectors at banks.

The CBE has prepared and implemented the Banking Sector Reform Program, through which banks have been restructured, their capital has been raised and their risk management has been strengthened. It is worth mentioning that one of the most fruitful results of the said Program was the applications of Basel II requirements as the CBE's BoD has approved in its session dated December 18, 2012 the regulations of the minimum capital adequacy requirement.

In line with Basel Committee's proposal to introduce a ''leverage ratio'' to act

as a supplementary measure to the risk-based capital adequacy requirements (in line with the timeline for applying Basel III accords), the CBE's BoD approved in its session held on 7 July 2015 the leverage ratio regulations. Under these regulations, banks are required to meet Basel III leverage ratio; first as an indicative ratio starting from the end of September 2015 till 2017, then as a mandatory ratio as of 2018.

To enhance the link between a bank’s risk profile and its internal risk management and capital adequacy assessment, the CBE started applying the second pillar of Basel II requirements based on two pivotal points, as follows:-

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a- In its meeting held on the 2nd of March 2016, the CBE's BoD approved the

regulations of the internal capital adequacy assessment process (ICAAP), required to be conducted by banks in accordance with each bank's risk profile, to address all types of risks (including the risks that were not tackled in the first pillar).

b- The CBE has taken several measures to apply the Supervisory Review and

Evaluation Process (SREP). The key purpose of SREP is to ensure that banks maintain adequate capital to ensure a sound coverage of their risks, as well as to encourage them to develop and use appropriate risk-management techniques to monitor, manage, measure and address all the risks they are vulnerable to.

c- Out of its keenness to apply the best international practices, especially Basel

III requirements, the CBE's BoD approved in its session on 7 April 2016 the implementation of the capital conservation buffer to ensure the coverage of losses that may arise during times of stress or financial crisis and to maintain the capital base of Egyptian banks. Banks operating in Egypt have to comply with these regulations as of the first of January 2016 for banks with fiscal year ending in December and as of the first of July 2016 for banks with fiscal year ending in June, in order to reach the required total ratio of 2.5 percent in January/July 2019.

On the 13th of July 2016, the CBE's BoD approved the regulations of

liquidity risk management. Banks shall adhere to these regulations as of July 2016, as follows:

First: Liquidity Coverage Ratio (LCR) Banks shall maintain a minimum ratio for each of local and foreign currencies, according to the following schedule:

2016 2017 2018 2019 70% 80% 90% 100%

Second: Net Stable Funding Ratio (NSFR) Banks must comply with this ratio within a maximum period of three months starting from July 2016, as follows:

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Maintain a total minimum ratio of 100%. Maintain a minimum ratio of 100% for each of local and foreign

currencies. Hereunder are the main instructions issued by the CBE to all banks during and after the period under review: Amending Articles No. 114 and 116 of Law No. 88 of the Year 2003 of the

Central Bank, the Banking Sector and Money, regulating foreign exchange operations, and adding a new article No. 127 (bis) of penalties related to enhancing penalties for trading in foreign currencies outside the official channels.

Banks issued 3-year and 18- month saving certificates with an annual return of 16 percent and 20 percent, in order, immediately after the CBE's decision of liberalizing the exchange rate on 3rd November 2016.

- The CBE also emphasized the following points:-

There are no restrictions imposed on deposit and withdrawal of foreign

currencies for individuals and corporates. Importers of non-essential goods and services are still bound by the

US$ 50,000 monthly limit for deposits and the US$ 30,000 daily limit for withdrawal.

Ensuring the Mobile ATMs' Operating Rules and Regulations are complied with.

Issuing "Unified Conditions" that banks shall abide by, including the provision of mortgage finance for low-income brackets, the pension policy for pensioners & pension beneficiaries, and people with freelance professions to help them have better access to finance under the Mortgage Finance Initiative.

Extending the "Tourism Support Initiative" for a further year until the end of February 2018, and the "Retail Loan Initiative" for tourism sector's employees for six months until the end of June 2017.

-32-

Amending the conditions of listing loans (subordinate deposits) according to capital adequacy standards in a way that allows inter-national institutions or multilateral development banks to enter the Egyptian market, and pump foreign currency resources as some of them expressed their willingness to grant subordinate loans to Egyptian banks.

Amending one of the determinants of customer's claims on small enterprises in accordance with the regulations that determined a risk weight of 75 percent to be applied only to micro, very small and small enterprises (excluding medium enterprises) with maximum annual sales less than LE 20 million instead of LE 10 million in response to the changes in exchange rates.

In the period under review, 25 BoD members and 9 executive managers were added to the register of banks, pursuant to Article 43 of Law No. 88 of 2003 of the Central Bank, the Banking Sector and Money, and in compliance with the applicable Fit and Proper criteria.

In light of Article 32/3 of the aforesaid Law which states that the Governor of the CBE, following the consent of the Board of Directors, shall approve the statute of the bank, and any modification thereto, certain articles of the statute of two banks were modified during the period in question.

Furthermore, 38 new branches (including 21 ordinary branches, 14 mini-branches, 2 Islamic mini-branches, and 1 seasonal branch) of 17 banks were added to the register of banks, whereas one Islamic branch and two agencies were delisted. This came in accordance with the regulations set by the CBE that give due regard to the soundness of financial positions, internal controls, and the efficiency of information systems of applicant banks to open new branches, together with their capital adequacy to ensure that they can better face the risks arising from the expansion in their activities. In light of the rules regulating the electronic payment services, 6 banks were licensed to offer 10 e-banking services.

Concerning on-site supervision, the Supervision Sector at the CBE conducts supervision over banks, guided by the set plan. It focussed on:

-33-

Verifying banks' compliance with the instructions stated in the Banks

Law and its Executive Regulations as well as the instructions issued by the CBE.

Identifying the different kinds of risks to which the inspected bank is vulnerable and performing quantitative and qualitative risk analysis to assess the risk level, then take the appropriate measures to minimize them and set plans for their avoidance; and making sure that the inspected bank secures enough provisions against non-performing loans, in order to guarantee the safety of depositors' and shareholders' funds.

Ensuring the soundness of banks' financial positions and verifying that the

financial data therein are identical to those in banks' records.

Ongoing follow-up with the economic, financial, and monetary develop-ments in light of the forex trading decisions which have been taken to curb speculations that adversely affect the national economy.

Verifying the soundness of internal control at banks and compliance with the principles of good governance.

Ensuring banks' compliance with the rules regulating E-banking services and that technology systems used at banks (including system upgrades), are adequately secured.

2/2/2 - Overview of the Aggregate Financial Position of Banks

The aggregate financial position of banks (excluding the CBE) rose by LE

221.4 billion or 7.8 percent in July/September 2016/2017, compared with LE 206.6 billion or 9.4 percent in the same period of the previous FY, to reach LE 3067.5 billion at end of September 2016.

The increase on the liabilities side stemmed from the growth of LE 79.5 billion or 3.8 percent in deposits at banks (against LE 103.6 billion or 6.0 percent) to LE 2195.6 billion at end of September 2016. Moreover, equities at banks rose by LE 25.8 billion or 15.7 percent, to LE 189.5 billion, obligations to banks abroad by LE 15.2 billion worth or 17.7 percent, bonds & long-term loans by LE 7.3 billion or 15.1 percent, obligations to banks in Egypt by LE 6.2 billion or 10.3 percent, provisions by LE 3.7 billion or 5.5 percent, and other liabilities by LE 83.7 billion or 27.5 percent.

-34-

On the assets side, the increase reflected the growth in balances with banks in Egypt by LE 63.9 billion or 17.0 percent (primarily as a result of the increase in banks' balances at the CBE by LE 55.7 billion), to stand at LE 438.5 billion at end of September 2016. Banks' investments in securities and bills also increased by LE 61.9 billion or 4.8 percent, to LE 1345.5 billion at end of September 2016. Likewise, lending and discount balances rose by LE 27.4 billion or 2.9 percent, to LE 970.2 billion. This is besides the hikes in cash by LE 2.0 billion, balances with banks abroad by LE 1.7 billon worth, and other assets by LE 64.5 billion.

Provisions2.3%

Bonds & Long-term Loans

1.8%Obligations to Banks Abroad

3.3%

Obligations to Banks in Egypt

2.2%

Total Deposits71.6%

Other Liabilities12.6%

Equities6.2%

Relative Structure of Liabilities(End of September 2016)

Cash1.1%

Securities & Investments

43.9%

Balances with Banksin Egypt 14.3%

Balances with Banks Abroad1.7%

Loan & Discount Balances

31.6%

Other Assets7.4%

Relative Importance of Assets(End of September 2016)

-35-

Most of the increase in banks' investments in securities and bills reflects

higher investments in government bonds by LE 31.4 billion, treasury bills by LE 26.3 billion, corporate equities by LE 3.6 billion, and banks' investments in foreign securities by LE 0.6 billion worth. Meanwhile, banks' investments in non-government bonds remained almost unchanged.

2/2/3- Interbank Transactions

2/2/3/1- Transactions with Banks Abroad

Transactions of local banks with correspondents abroad posted a net debit

position of LE 48.5 billion worth at end of September 2016, up by LE 13.5 billion worth during July/September 2016/2017. This was a result of the pickup in their obligations to banks abroad by LE 15.2 billion worth and their balances therewith by only LE 1.7 billion worth.

Transactions with Banks Abroad

(LE mn)

Change in July/Sept. End of June

2015 Sept. 2015

June 2016

Sept. 2016

2015/2016 2016/2017

Value % Value %

Net Position 24687 15160 -34986 -48459 (9527) (38.6) (13473) 38.5

Balances with

banks abroad 54834 52773 51074

52819 (2061) (3.8) 1745 3.4

Obligations to

banks abroad 30147 37613 86060

101278

7466

24.8

15218

17.7

50.8

44.4

3.50.9 0.4

Treasury Bills Gov. Bonds Corp. Equities ForeignSecurities

Non-gov. Bonds

0

10

20

30

40

50

60

Relative Structure of Banks' Portfolio Investments(End of September 2016 ))%(

-36-

The volume of transactions in the interbank money market in Egypt (in

terms of deposits) surged by LE 8.1 billion or 14.2 percent in the period under review (against LE 8.4 billion or 42.6 percent in the same period of the previous FY), bringing total deposits to LE 65.2 billion at end of September 2016. The increase was an outcome of the pickup in foreign currency deposits by LE 12.4 billion worth. However, such a rise was mitigated by the decline in local currency deposits by LE 4.3 billion.

2/2/4 - Deposits

Banks' deposits (including government deposits) grew, during the reporting period, by LE 79.5 billion or 3.8 percent (versus LE 103.6 billion or 6.0 percent in the same period a year earlier), to LE 2195.6 billion or 71.6 percent of banks' aggregate financial position at end of September 2016.

About 90.4 percent of the increase was concentrated in local currency

deposits which rose by LE 71.9 billion or 4.2 percent, to LE 1763.4 billion (or 80.3 percent of total deposits at end of September 2016). Foreign currency deposits went up by only LE 7.6 billion worth or 1.8 percent, to post LE 432.2 billion worth at end of September 2016.

The household sector accounted for 56.4 percent of the total increase in

banks' deposits in local and foreign currencies. The private business sector came next with 28.6 percent, followed by the government sector (16.3 percent), and the external sector (0.6 percent). However, such an increase was held back by the negative contribution of the public business sector (1.9 percent).

2/2/3/2- Interbank Transactions in Egypt

13.69.3

43.5

55.9

0

10

20

30

40

50

60

June 2016 Sept. 2016

LE bnDeposits in the Interbank Money Market

(End of)

Local Currency Foreign Currencies

-37-

Deposits at Banks by Sector (LE mn)

Local Currency Foreign Currencies End of June

2016 Sept. 2016

June 2016

Sept. 2016

Total 1691590 1763429 424527 432159

Government sector 258021 266217 96876 101673

Public business sector 43733 42782 17925 17356

Private business sector 263961 289050 99432 97055

Household sector 1116316 1155663 206491 211948

External sector 9559 9717 3803 4127

The household sector accounted for more than half the increase in local currency deposits. Specifically, its deposits scaled up by LE 39.4 billion or 3.5 percent to LE 1155.7 billion (representing 65.5 percent of total deposits in local currency at end of September 2016). Deposits of the private business sector increased as well by LE 25.1 billion or 9.5 percent to LE 289.1 billion, those of the government sector by LE 8.2 billion or 3.2 percent, and those of the external sector by LE 0.2 billion or 1.7 percent at end of September 2016. By contrast, deposits of the public business sector dropped by LE 1.0 billion or 2.2 percent.

46.8

(0.1)

13.7

41.7

0.1

8.2

(1.0)

25.1

39.4

0.2

(2)4

1016222834404652

Government Sector Public Business

Sector

Private Business

Sector

Household Sector External Sector

LE bn

Change in Sectors' Local Currency Deposits

during July/Sept.

2015/2016 2016/2017

-38-

Foreign currency deposits (expressed in LE) increased by LE 7.6 billion. 71.5 percent of such a rise came from the household sector, whose deposits mounted by LE 5.5 billion or 2.6 percent to LE 211.9 billion (or 49.0 percent of total deposits in foreign currencies at end of September 2016). The government sector's deposits (accounting for 62.9 percent of the increase in foreign currency deposits) grew by LE 4.8 billion or 5.0 percent. The external sector's deposits inched up by only LE 0.3 billion or 8.5 percent. Such increases were held back by the decrease in the deposits of both the private and public business sectors by LE 2.4 billion (or 2.4 percent) and LE 0.6 billion (or 3.2 percent), respectively.

2/2/5- Lending Activity

Banks' lending and discount balances to customers reached LE 970.2 billion (accounting for 31.6 percent of total assets and 44.2 percent of total deposits at end of September 2016), up by LE 27.4 billion or 2.9 percent in July/September 2016/2017 (against an increase of LE 53.6 billion or 7.5 percent during the same period a year earlier). Such an increase was ascribable to the rise in lending and discount balances in local currency by LE 12.9 billion or 1.9 percent to LE 685.5 billion, and those in foreign currencies by LE 14.5 billion worth or 5.4 percent to LE 284.7 billion worth at end of September 2016.

(10.2)

0.4

6.6 4.5

0.1

4.8

(0.6)(2.4)

5.5

0.3

(12)(10)(8)(6)(4)(2)02468

1012

Government Sector Public Business

Sector

Private Business

Sector

Household Sector External Sector

LE bn

Change in Sectors' Foreign Currency Deposits

during July/Sept.

2015/2016 2016/2017

-39-

Loans by Sector (LE mn)

Local Currency Foreign Currencies End of June

2016 Sept. 2016

June 2016

Sept. 2016

Total 672578 685462 270149 284691 Government sector 100230 102472 73510 83846 Public business sector 65169 66928 27663 27875 Private business sector 302396 305952 157261 161510 Household sector 204470 209653 3403 3723 External sector 313 457 8312 7737

The pickup in lending and discount balances in local currency came on the

back of the rise in loans extended to all sectors during the period under review. Loans to the household sector surged by LE 5.2 billion or 2.5 percent, to LE 209.7 billion at end of September 2016. Likewise, loans to the private business sector rose by LE 3.6 billion or 1.2 percent to LE 306.0 billion; those to the government sector by LE 2.2 billion or 2.2 percent; those to the public business sector by LE 1.8 billion (or 2.7 percent); and those to the external sector by LE 0.1 billion.

The government sector accounted for 71.1 percent of the increase in lending

and discount balances in foreign currencies (expressed in LE), up by LE 10.3 billion or 14.1 percent, to LE 83.8 billion or 29.5 percent of total foreign currency loans at end of September 2016. Likewise, loans extended to the private business sector scaled up by LE 4.3 billion or 2.7 percent, to LE 161.5 billion (representing 56.7 percent of the total foreign currency loans at end of September 2016). Loans to the household sector picked up by only LE 0.3 billion or 9.4 percent, and to the public business sector by LE 0.2 billion or 0.8 percent. Conversely, loans to the external sector fell by LE 0.6 billion.

30.0

9.0

(4.6)

7.0

0.1 4.0 2.7

5.9

(0.2) (0.2)

2.2 1.8 3.6

5.2

0.1

10.3

0.2

4.3 0.3

(0.6)

(15)

(10)

(5)

0

5

10

15

20

25

30

35

40

Governmentsector

Publicbusinesssector

Privatebusinesssector

Householdsector

Externalsector

Governmentsector

Publicbusinesssector

Privatebusinesssector

Householdsector

Externalsector

2015/2016 2016/2017

LE bn

Foreign CurrenciesLocal Currency

Change in Lending and Discount Balances by Sector

during July/Sept.

-40-

The relative distribution of loans by economic activity indicates that the manufacturing sector was the major recipient with a share of 34.0 percent of loans extended by banks in both local and foreign currencies at end of September 2016. The unclassified sectors, including the household sector, came next with a share of 32.3 percent, followed by the services sector (23.6 percent), then trade (9.0 percent) and agriculture (only 1.1 percent).

At end of September 2016, banks' loans and advances (excluding discounts)

by maturity registered LE 964.8 billion, up by LE 27.7 billion or 3.0 percent during the reporting period. The increase was ascribable to the growth in long-term loans (more than one year) by LE 14.7 billion or 2.7 percent (owing to the rise in both local and foreign currency loans by LE 12.3 billion (or 3.0 percent) and LE 2.4 billion worth (or 1.9 percent), in order. Furthermore, short-term loans (one year or less) increased by LE 13.0 billion or 3.3 percent, due to the growth in local and foreign currency loans by LE 0.8 billion (or 0.3 percent) and LE 12.2 billion worth (or 8.8 percent), respectively.

0

50

100

150

200

250

300

350

Agriculture Manufacturing Trade Services Unclassified

sectors

LE bn

Credit Facilities by Economic Activity

End of Sept. 2016

Foreign Currencies Local Currency

260.0 260.8

407.3 419.6

139.3 151.5 130.6 133.0

04080

120160200240280320360400440

June 2016 Sept. 2016 June 2016 Sept. 2016

LE bnOver One Year One Year or Less

Loans & Advances by Banks Excluding Discounts

(End of)

Local Currency Foreign Currencies

-41-

3- Non-Banking Financial Sector*

3/1- Stock Market

The performance of the Egyptian Exchange (EGX) in July/Sept. 2016/2017

showed an increase in all price indices. Its benchmark index (EGX 30) increased by 13.5 percent to 7881.1 points at end of September 2016 (from 6942.5 points at end of June 2016). Also, EGX 20 Capped rose by 13.4 percent to 7909.8 points from 6977.4 points; EGX 70 by 0.2 percent to 351.6 points from 351.0 points; EGX 100 by 6.3 percent to 790.3 points from 743.7 points ; and EGX 50 EWI by 4.1 percent to 1311.5 points. In addition, NILEX index – which reflects the performance of small and medium enterprises listed on the Nile Stock Exchange – increased by 2.5 percent to 647.1 points from 631.6 points. Sectoral Indices

Most of the sectoral indices witnessed increases during July/Sept. 2016/2017.

The sector of personal and household products topped the list, up by 22.5 percent, followed by communications sector (18.9 percent), and banks (17.3 percent). Conversely, food and beverages registered the highest decline, down by 31.0 percent, followed by construction and building materials (12.4 percent).

* Source: EFSA and EGX's monthly reports.

0

2000

4000

6000

8000

10000

Point

The Benchmark EGX 30 Index

-42-

Sectoral Indices

Sector At end of Change in

July/Sept. 2016/2017 (%) June 2016 Sept. 2016

Personal and household products 629.1 770.6 22.5

Communications 369.6 439.6 18.9

Banks 3263.2 3828.9 17.3

Financial services (exc. banks) 352.2 395.5 12.3

Real estate 1052.7 1168.5 11.0

Industrial goods and services & cars 945.6 1045.4 10.6

Chemicals 628.7 668.3 6.3

Tourism and leisure 136.8 137.4 0.4

Basic resources 325.1 317.6 -2.3

Healthcare and pharmaceuticals 2562.5 2306.9 -10.0

Construction and building materials 1041.5 912.7 -12.4

Food and beverages 1106.5 763.9 -31.0

Concerning the primary market, the number of new issues approved by

EFSA in the period under review reached 928, with a total value of LE 16.0 billion (against 891 issues, totaling LE 20.4 billion in the previous FY). Of this figure, issues for new businesses reached 685 in number (73.8 percent of total issues), at a value of LE 3.8 billion. Meanwhile, the number of issues for capital increases of existing companies stood at 243, totaling LE 12.2 billion (76.1 percent of the total value of issues).

The listing activity on the EGX showed that the number of listed companies

rose to 223 at end of September 2016 (from 222 at end of June 2016). In the meantime, the nominal capital of these companies decreased by 1.1 percent to LE 186.8 billion (from LE 188.8 billion). Meanwhile, their market capitalization grew by 5.8 percent to LE 404.8 billion at end of September 2016 (from LE 382.5 billion at end of June 2016).

The value of issued and listed bonds went up by LE 33.0 billion or 4.4 percent

in the quarter in question, to LE 789.8 billion at end of Sept. 2016 (against LE 756.7 billion at end of June 2016). This was attributed to the rise of LE 38.7 billion in the value of Egyptian treasury bonds (primary dealers) to record LE 783.7 billion or 99.2 percent of the total value of listed bonds at end of September 2016. Add to this the redemption of legal entities' bonds - that were listed on the EGX in December 2010 - in an amount of LE 5.0 billion. Meanwhile, corporate and securitization bonds went down by LE 0.3 billion and LE 0.4 billion, respectively.

-43-

Trading in the secondary market (including NILEX) showed that the number of traded securities (shares and bonds) rose during the period under review by 0.7 billion papers or 6.1 percent, to 11.5 billion. By contrast, their value stepped down by LE 20.3 billion or 31.6 percent to LE 43.9 billion and the number of transactions fell by 25.0 thousand or 2.2 percent to 1.1 million.

Trading in shares on the EGX surged to 77.2 percent of the total value of

transactions (against 47.6 percent in the same period a year earlier). However, trading in bonds decreased to 21.2 percent of the total (against 51.9 percent). Also, trading in mutual funds' certificates increased to 1.6 percent of the total (against 0.5 percent).

Trading in Securities

July/Sept. 2015/2016 2016/2017

No. of Transactions (000s) 1144 1119

A- Shares, bonds and mutual funds' certificates (listed) 1116 1080

B- Shares, bonds and mutual funds' certificates (unlisted) 6 6

C- Small and medium enterprises market (NILEX) 22 33 No. of Traded Securities (mn) 10843 11509



C- Small and medium enterprises market (NILEX) 84 165 Value of Transactions (LE mn) 64163 43863



C- Small and medium enterprises market (NILEX) 127 243 Source: EFSA and EGX's monthly reports

Turning to the market of small and medium enterprises (NILEX), the number of listed companies reached 31 and the market capitalization of their listed shares stood at LE 1.2 billion at end of September 2016. Also, the number of traded securities reached 165.0 million papers during the period in question, executed through 33.0 thousand transactions, with a value of LE 0.2 billion.

As for trading in the Exchange Traded Funds (ETFs) which track EGX 30

index, the number of their traded securities reached 2.0 million papers, with a total value of LE 21.0 million during the reporting period.

-44-

Investors' Transactions*

Foreigners' transactions on the EGX (purchases and sales) noticeably rose by

40.5 percent during July/Sept. 2016/2017 to LE 20.3 billion (against LE 14.5 billion in the same period last year). Their dealings resulted in net sales of LE 555.0 million (against net purchases of LE 109.0 million in the corresponding period).

(3)(1)

13579

1113151719

2015/2016 2016/2017

Foreign Investors' Transactions during July/Sept.

Purchases

Sales

Net

LE bn

Egyptians' trading on the EGX accounted for 69.8 percent of total transactions in July/Sept. 2016/2017. On the other hand, dealings of foreign investors represented 30.2 percent of the total.

3/2- Mutual Funds

Compared with September 2015, the number of mutual funds remained

unchanged at 94 at end of September 2016 (93 open-end and 1 close-end).

* This statement does not include primary dealers' transactions.

Egyptians69.8%

Foreigners 30.2%

Ratios of Egyptian and Foreign Inv estors’ Transactions on the EGX

during July/Sept. 2016/2017

-45-

4- Public Finance and Domestic Public Debt 4/1- Fiscal Operations of the State Budget

According to the preliminary data on actual execution of the state budget (administrative system, local administration and service authorities), total revenues decreased by LE 3.3 billion or 3.3 percent to LE 96.8 billion or 3.0 percent of GDP in July/Sept. 2016/2017; whereas total expenditures rose by LE 2.3 billion or 1.3 percent to LE 172.2 billion or 5.3 percent of GDP. This resulted in a cash deficit of LE 75.4 billion. After adding the LE 1.4 billion net acquisition of financial assets to the cash deficit, the overall deficit decreased by LE 1.5 billion to LE 76.8 billion, representing 2.4 percent of GDP (compared to LE 78.3 billion or 2.8 percent of GDP in the previous FY).

It is worth noting that the primary deficit in the state budget as a percentage of GDP fell to 0.6 percent in July/September 2016/2017 (from 1.0 percent in the same period a year earlier) This mirrored the impact of the corrective measures taken in public finance to achieve fiscal sustainability, while observing the social dimension of all society brackets, especially the low-income brackets under the comprehensive economic reform program recently adopted by the authorities.

Hereunder is an analysis of the actual data released by the Ministry of

Finance on the fiscal operations of the State budget during July/September 2016/2017, as compared to their actual figures in the same period a year earlier.

2.7 2,83,1

3.6

3.0

5.5 5.6 5.86.1

5.3

2.8 2.9 2,7 2.8

2.4

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2012/2013 2013/2014 2014/2015 2015/2016 2016/2017

Ratios of Revenues, Expenditures & Overall Budget Deficit /GDP during July/Sept.

Revenues Expenditures Overall Budget Deficit

Expenditures & Revenues

Overall BudgetDeficit

(%)(%)

-46-

Total revenues declined by LE 3.3 billion or 3.3 percent, to LE 96.8 billion or 3.0 percent of GDP during the period under review (against LE 100.1 billion or 3.6 percent of GDP). Such a decrease was a combined result of the retreat in tax revenues by LE 0.4 billion or 0.6 percent, to LE 64.1 billion (or 66.2 percent of total revenues) and non-tax revenues by LE 2.9 billion or 8.1 percent, to LE 32.7 billion (or 33.8 percent of total revenues). This can be seen in the following chart:

Tax revenues decreased by LE 0.4 billion as a confluence of the following

developments:

Taxes on income and capital gains decreased by LE 3.6 billion, due to lower proceeds from taxes on both the CBE by LE 3.4 billion (as the CBE made, in the previous corresponding period, partial repayments of the taxes for FY 2015/2016 in the amount of LE 6.0 billion under the income tax account), and Suez Canal Authority by LE 1.7 billion. Add to this the higher proceeds from taxes on salaries by LE 1.0 billion (reflecting the rise in total wages of state employees as of the beginning of the fiscal year), and from the rest of companies by LE 0.5 billion.

Taxes on international trade (customs) decreased by LE 0.8 billion, due to the retreat in merchandise imports by LE 0.8 billion.

79.2

67.9 66.964.3 66.2

12.1 13.5

26.5 25.8 26.1

-0.3

11.9

0.12.6

0.1

-10

0

10

20

30

40

50

60

70

80

90

2012/2013 2013/2014 2014/2015 2015/2016 2016/2017

Ratios of Tax Revenues, Property Income & Grants/Total Revenues during July/Sept.

Tax Revenues Property Income Grants

(%)

-47-

Taxes on goods and services rose by LE 2.0 billion (or 7.0 percent),

owing to the increase in sales taxes on both local and imported goods; and on international and local communications services. Add to this the rise in stamp duties on contracts of water, electricity, gas and telephone companies, as well as advertisements and transportation services and insurance.

Property taxes moved up by LE 2.0 billion (or 35.1 percent), reflecting the rise in revenues from taxes on T-bills and bonds' payable interest.

- The drop in non-tax revenues (LE 2.9 billion) was mainly explained by:

The drop in external grants by LE 2.4 billion during the period under review to LE 0.1 billion (or 0.1 percent of total revenues).

The decrease in property income by LE 0.5 billion to LE 25.3 billion (or

26.1 percent).

-48-

Fiscal Operations of the Budget Sector (Public Revenues)

(LE bn)

July/Sept. 2015/2016 2016/2017 Change

+ (-) Value Actual

Relative Structure

(%) Actual

Relative Structure

(%)

Total Revenues 100.1 100.0 96.8 100.0 (3.3)

Tax Revenues 64.5 64.3 64.1 66.2 (0.4) Taxes on Income and Profits 23.6 23.5 20.0 20.6 (3.6)

From EGPC 0.0 0.0 0.0 0.0 0.0 From SCA 4.0 4.0 2.3 2.4 (1.7) From CBE 7.3 7.2 3.9 4.0 (3.4) Other entities 4.7 4.7 5.2 5.3 0.5 Payable by individuals 7.6 7.6 8.6 8.9 1.0

Taxes on Property 5.9 5.9 7.9 8.2 2.0 Taxes on Goods & Services 29.9 29.8 31.9 33.0 2.0 Taxes on International Trade (customs) 5.1 5.1 4.3 4.4 (0.8) Other Taxes 0.0 0.0 0.0 0.0 0.0

Grants 2.5 2.6 0.1 0.1 (2.4) Current 2.5 2.6 .. .. .. Capital 0.0 0.0 .. .. .. Other Revenues 33.1 33.1 32.6 33.7 (0.5) Property Income 25.8 25.8 25.3 26.1 (0.5)

From EGPC 0.0 0.0 0.0 0.0 0.0 From SCA 4.5 4.5 4.7 4.9 0.2 From CBE 19.5 19.4 14.9 15.4 (4.6) Economic authorities 1.0 1.0 1.8 1.8 0.8 Companies 0.2 0.2 0.1 0.1 (0.1) Other (EGPC & TML) 0.0 0.0 .. .. .. Other 0.6 0.7 .. .. ..

Selling Proceeds of Goods and Services 4.3 4.3 4.3 4.3 0.0 Financing Investments 1.4 1.4 .. .. .. Others 1.6 1.6 .. .. ..

Source: Table (4/1) in the Statistical Annex. Percentages are calculated in terms of LE million. .. Unavailable. .

-49-

On the expenditures side, total expenditures accelerated by LE 2.3 billion or 1.3 percent, to LE 172.2 billion or 5.3 percent of GDP (compared with LE 169.9 billion or 6.1 percent of GDP). The following chart illustrates the developments in the main items of expenditures as a percentage of total expenditures.

32.1

33.2

8.8

0

5

10

15

20

25

30

35

40

45

50

2012/2013 2013/2014 2014/2015 2015/2016 2016/2017

Ratios of Wages & Compensations of Employees, Paid Interest and Subsidies / Total Expenditures during July/Sept.

Wages & Compensations of Employees Paid Interest Subsidies

(%)

The increase in total expenditures was an outcome of the following

developments: - The increase in interest payments on domestic and external debts by LE 6.5

billion to LE 57.2 billion (or 33.2 percent of total expenditures).

- The pickup in investments of budget sector related entities by LE 1.2 billion, as the government continued to increase public investments to develop the infrastructure and housing projects, and to expand investments in health and education sectors.

- The rise in purchases of goods and services by LE 0.5 billion.

- The decrease in subsidies, grants, and social benefits by LE 5.8 billion; including mainly:

-50-

The decline in subsidy costs by LE 5.9 billion to LE 15.1 billion (or 8.8 percent of total expenditures), mainly because there were no settlements made with the EGPC. Add to this the decline in subsidies for supply commodities due to the different timing of purchasing domestic and imported wheat and not cutting the subsidy incurred by the State. In the meantime, the number of subsidy beneficiaries increased. Also, the demand for subsidized products rose due to its diversity and the government's enhancement of its quality.

The decrease in grants extended by the government to some international entities and foreign governments by LE 1.3 billion.

- The fall in other expenditures by LE 0.1 billion.

Workers' wages and compensations remained unchanged at LE 55.3

billion. Accordingly, its ratio to total expenditures declined to 32.2 percent from 32.5 percent.

-51-

Fiscal Operations of the Budget Sector

(Public Expenditures) (LE bn)

July/Sept. 2015/2016 2016/2017 Change + (-)

Actual Relative

Structure (%)

Actual Relative

Structure (%)

Value

Total Expenditures 169.9 100.0 172.2 100.0 2.3 Workers' Wages & Compensations 55.3 32.5 55.3 32.2 0.0

Salaries & Allowances 44.7 26.3 44.5 25.9 (0.2) Insurance Benefits 5.1 3.0 5.5 3.2 0.4

Other 5.5 3.2 5.3 3.1 (0.2) Purchases of Goods & Services 5.2 3.0 5.7 3.2 0.5

Goods 1.8 1.0 2.3 1.3 0.5 Services 2.7 1.6 3.0 1.7 0.3 Other 0.7 0.4 0.4 0.2 (0.3)

Interest 50.7 29.8 57.2 33.2 6.5 Domestic 49.5 29.1 56.0 32.5 6.5

To NIB & SIFs 5.4 3.2 .. .. .. To others 44.1 25.9 .. .. .. Foreign 1.2 0.7 1.2 0.7 0.0 Subsidies, Grants & Social Benefits 37.9 22.3 32.1 18.6 (5.8) Subsidies 21.0 12.3 15.1 8.8 (5.9)

To EGPC 0.0 0.0 0.0 0.0 0.0 To GASC 10.0 5.9 5.1 3.0 (4.9) Others 11.0 6.4 10.0 5.8 (1.0)

Grants 2.1 1.2 0.8 0.4 (1.3) Social Benefits 14.6 8.6 16.0 9.3 1.4 To SIFs 12.5 7.4 13.1 7.6 0.6 Other 2.1 1.2 2.9 1.7 0.8 Other 0.2 0.2 0.2 0.1 0.0 Other Expenditures 13.1 7.8 13.0 7.5 (0.1) Defense 11.4 6.7 .. .. .. Other 1.7 1.1 .. .. .. Purchases of Non-Financial Assets (Investments) 7.7 4.6 8.9 5.3 1.2 Fixed assets 6.9 4.1 8.2 4.8 .. Other 0.8 0.5 0.7 0.5 .. Source: Table (4/2) in the Statistical Annex Percentages are calculated in terms of LE million. .. Unavailable.

-52-

Against this background, the cash deficit of the budget sector amounted to

LE 75.4 billion or 2.3 percent of GDP in the period under review. By adding the

net acquisition of financial assets (LE 1.4 billion) to the cash deficit, the overall

deficit would retreat by LE 1.5 billion to LE 76.8 billion or 2.4 percent of GDP,

against LE 78.3 billion or 2.8 percent of GDP in the same period a year earlier.

-53-

4/2- Domestic Public Debt

At end of Sept. 2016, domestic public debt amounted to LE 2758.0 billion

or 85.0 percent of GDP (against LE 2620.7 billion or 96.8 percent at end of June 2016), up by LE 137.3 billion or 5.2 percent in July/Sept. 2016/2017.

Chart

Government domestic debt (net) expanded by LE 118.0 billion or 5.2 percent in the period under review, to register LE 2403.7 billion or 74.1 percent of GDP at end of September 2016. The surge was due to the rise of LE 84.3 billion in the balances of treasury bonds and bills, and of LE 33.9 billion in net government balances at the banking system (because of the rise in government loans by LE 29.4 billion and the retreat in its deposits by LE 4.5 billion). Meanwhile, the value of the issued Masri Dollar Certificates fell by LE 0.2 billion.

Domestic public debt includes net debt of the government, public economic authorities, and the NIB, minus the

intra-debt of both the government and public economic authorities to the NIB.

4/2/1- Net Debt of the Government

2403.7

118.9

317.4

-82.0

2758.0

-500 0 500 1000 1500 2000 2500 3000

Net Domestic Debt of Government

Net debt of Economic Authorities

NIB Debt (Net)

Intra-Debt

Gross Domestic Debt

Gross Domestic Debt at End of Sept. 2016 (LE bn)

-54-

Domestic Debt of the Government

(LE bn)

Balances at end of

June 2016 Sept. 2016 Change + (-) in July/Sept.

2016/2017 Value % Value %

Domestic Government Debt (Net) 2285.7 100.0 2403.7 100.0 118.0

- Balances of Bonds and Bills 2290.6 100.2 2374.9 98.8 84.3

. Bonds of which; 1474.6 64.5 1528.6 63.6 54.0

Tradable on exchanges 753.9 33.0 791.1 32.9 37.2

. Treasury bills 816.0 35.7 846.3 35.2 30.3

- Facilities from SIFs 0.3 0.0 0.3 0.0 0.0

- Borrowing from Other Entities 0.0 0.0 0.0 0.0 0.0

- Masri Dollar Certificates 1.1 0.1 0.9 0.1 (0.2)

- Net Balances at the Banking System -6.3 -0.3 27.6 1.1 33.9

. Credit facilities 290.8 12.7 320.2 13.3 29.4

. Deposits ) -( 297.1 13.0 292.6 12.2 (4.5)

Net Domestic Government Debt/GDP (%) 84.4 74.1 Source :Table (4/4) in the Statistical Annex. Ratios are calculated in terms of LE million. The increase of LE 84.3 billion in the balance of bonds and bills was distributed as follows:

64.0 percent (or LE 54.0 billion worth) was in government bonds (of which LE 38.7 billion were in Egyptian treasury bonds listed on the EGX and LE 1.5 billion were in treasury bonds at the CBE mostly to cover the cash deficit in government balances).

36.0 percent (or LE 30.3 billion worth) was in treasury bills (mostly in those issued in Egyptian pound).

Ne

t D

om

est

ic D

eb

t o

f th

e G

ove

rnm

en

t /G

DP

73.2

84.4

74.1

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

-500.0

0.0

500.0

1000.0

1500.0

2000.0

2500.0

3000.0

Sept. 2015 June 2016 Sept. 2016

Net Domestic Debt of Government

Net Government Balances with the Banking System

Bonds & other Credit Facilities

Treasury Bills

Ratio of Government Debt /GDP

%LE bn

Ne

t D

om

est

ic D

eb

t o

f G

ove

rnm

en

t /G

DP

-55-

4/2/2- Net Debt of Public Economic Authorities

In July/Sept. 2016/2017, net debt of public economic authorities surged by

LE 15.2 billion, to LE 118.9 billion at end of September 2016. This rise was traceable to the increase in their borrowing from both the banking system by LE 13.5 billion (due to the rise in their claims on the banking system by LE 2.9 billion and the decrease in their deposits therewith by LE 10.6 billion) and NIB by LE 1.7 billion.

Net debt of the NIB (including intra-debt) reached LE 317.4 billion at end of September 2016, up by LE 7.8 billion during the period in question. The rise was an outcome of the surge in total resources invested at the NIB by LE 7.1 billion to LE 322.3 billion, on the one hand, and the decline in its deposits at the banking system by LE 0.7 billion, on the other.

4/2/4- Intra-Debt

The intra-debt of public economic authorities and the government to NIB reached LE 82.0 billion at end of September 2016 (against LE 78.3 billion at the end of June 2016) up by LE 3.7 billion. Loans extended by the NIB to these authorities registered LE 53.2 billion, with a rise of LE 1.7 billion in July/ September 2016/2017. NIB's investments in government securities (bills and bonds) reached LE 28.8 billion, up by LE 2.0 billion.

4/2/3- Net Debt of the NIB

Loans to Holding

Companies & Affiliate Units, Concessional

Lending & Others73.1%

Loans to Public

Economic Authorities

16.5%

Investment in Treasury Bills

& Bonds8.9%

Deposits with the Banking

System1.5%

Uses of the NIB at End of Sept. 2016

Social Insurance

Funds17.6%

Proceeds of Investment

Certificates & Accumulated

Interest46.6%

Post Office Saving

Account35.2%

Dollar Development

Bonds &Others0.6%

Resources of the NIB at End of Sept. 2016

-56-

5 - External Transactions

5/1 – Foreign Exchange Market and NIRs

Out of its keenness to shore up confidence in the Egyptian economy and

achieve monetary stability by targeting lower levels of inflation, the CBE decided on November 3, 2016 (at the time of preparing this Review) to embark on several measures to adjust the foreign currency trading policy through liberalizing the exchange rates. According to this decision, banks are at liberty to quote and trade at any exchange rate. The decision which came in line with a broader package of reforms that will ensure macroeconomic stability through fiscal consolidation, is intended to restore FX trading to formal banking channels and eliminate the parallel market.

The volume of trade through periodic FX auctions reached US$ 0.3 billion

in July/Sept. 2016/2017, bringing as such the volume of trade since the inception of this mechanism in Dec. 2012 till the end of September 2016 to US$ 21.6 billion, with a monthly average of US$ 469.6 million. Apart from these periodic auctions, the CBE holds exceptional auctions as dictated by market needs. Since the inception of this mechanism till the end of the period of review, the CBE held nine exceptional FX auctions, with a total value of US$ 7.7 billion.

It is worthy to mention that the CBE sold more than US$ 314.7 million in

Q1 of FY 2016/2017 in the local market, so as to cover the staple commodities at banks. Furthermore, the CBE sold more than US$ 92 million during this period to clear pending backlogs of all aviation companies at Egyptian banks, and more than US$ 652 million to meet the oil sector's needs.

Compared with the end of June 2016, the weighted average of the US dollar

interbank rate remained unchanged at LE 8.7800 at the end of September 2016. At the end of May 2017 (during the preparation of this Review), the weighted average of the US dollar reached LE 18.0868, with a decrease of 51.5 percent in the value of the Egyptian pound, relative to the end of June 2016.

-57-

Net international reserves (NIR) at the CBE increased by US$ 2.0 billion

or 11.7 percent in July/Sept. 2016/2017, to US$ 19.6 billion at end of September 2016 (covering 4.1 months of merchandise imports). Moreover, at the time of preparing this Review, NIRs increased to US$ 31.1 billion at end of May 2017 (covering 6.5 months of merchandise imports).

0

1

2

3

4

5

0

5

10

15

20

25

30

Jun-14 Sep-14 Jun-15 Sep-15 Jun-16 Sep-16

Net International Reserves & Months of Merchandise

Imports

NIR NIR/Months of Merchandise Imports

Months(US$ bn)

-58-

5/2- Balance of Payments

During the first quarter of FY 2016/2017, Egypt's transactions with the

external world unfolded an overall BOP surplus of US$ 1.9 billion (against an overall deficit of US$ 3.7 billion in the same period a year earlier). This was due to the fact that the capital and financial account achieved a net inflow of US$ 7.1 billion (against US$ 1.6 billion). Meanwhile, the current account deficit mounted to US$ 5.0 billion (against US$ 4.0 billion).

Below are the main factors that affected the BOP performance during

the period under review and the period of comparison:

The trade deficit retreated by 13.4 percent to US$ 8.7 billion (against US$ 10.0 billion). This was due to the increase in export proceeds by 11.2 percent to US$ 5.3 billion (against US$ 4.7 billion); and the decline in import payments by 5.5 percent to US$ 13.9 billion (against US$ 14.7 billion).

The services surplus narrowed by 50.2 percent, owing to the drop in tourism revenues by 56.1 percent to only US$ 758.2 million (against US$ 1.7 billion). Conversely, travel payments abroad scaled up to US$ 1.1 billion (against US$ 791.5 million). Moreover, Suez Canal transit receipts fell by 4.8 percent to US$ 1.3 billion (against US$ 1.4 billion).

Investment income balance registered a net outflow of US$ 1.1 billion, primarily due to the fact that investment income payments registered US$ 1.2 billion during the period under review. Meanwhile, investment income receipts registered only US$ 81.6 million.

-8

-6

-4

-2

0

2

4

6

8

10

Q1 Q2 Q3 Q4 Q1

2015/2016 2016/2017

US $bnMain Items of BOP

Capital & financial Account Current Account Overall Balance

-59-

Net unrequited current transfers declined by 21.3 percent to US$ 3.39 billion (against US$ 4.32 billion), driven by the decrease in net private transfers to as low as US$ 3.36 billion (against US$ 4.29 billion), mainly on the back of the retreat in remittances of Egyptians working abroad by 22.3 percent. By contrast, net official transfers rose to US$ 33.8 million (from US$ 21.9 million).

The net inflow of FDI in Egypt scaled up to US$ 1.9 billion (against US$ 1.4 billion).

Portfolio investment in Egypt achieved a net outflow of US$ 840.9 million (against US$ 1.4 billion). This was primarily due to the Egyptian authorities' repayment of bonds that had fallen due in the reporting period in the amount of US$ 1.0 billion (outflow). This attests to the commitment and ability of the Egyptian economy to honor its obligations.

Medium- and long-term loans and facilities unfolded net disburse-ments of US$ 855.5 million (against net repayments of US$ 573.0 million).

The net change in the liabilities of the CBE to the external world increased, thereby registering a net inflow of US$ 3.4 billion in the reporting period (against US$ 1.2 million), primarily due to the rise in the deposits of some Arab countries at the CBE .

The net change in banks' liabilities rose, recording as such a net inflow of US$ 1.6 billion (against US$ 668.9 million).

Hereunder is a detailed review of BOP components during July/Sept. 2016/2017 compared with the same period a year earlier:

-60-

5/2/1- Current Account

The current account deficit registered US$ 5.0 billion during the period

under review (against US$ 4.0 billion). This was a result of the decline in both services surplus by 50.2 percent to only US$ 1.4 billion (against US$ 2.8 billion), and net unrequited current transfers by 21.3 percent to only US$ 3.4 billion (against US$ 4.3 billion). The widening of the current account deficit was curbed by the retreat in the trade deficit by 13.4 percent to US$ 8.7 billion (against US$ 10.0 billion), as thoroughly illustrated below:

5/2/1/1 - Trade Balance

The trade deficit retreated by 13.4 percent to only US$ 8.7 billion (from US$

10.0 billion), on the back of the increase in export proceeds and the decline in import payments, as detailed below:

Merchandise export proceeds increased by 11.2 percent to US$ 5.3 billion (from US$ 4.7 billion). Such an increase was traceable to the rise of US$ 666.7 million in non-oil exports and the drop of US$ 136.4 million in oil exports, in the wake of the fall in world prices of crude oil by 8.4 percent and in the quantities exported of crude oil by 10.5 percent in the reporting period compared with the previous corres-ponding period.

-12

-10

-8

-6

-4

-2

0

2

4

6

Q1 Q2 Q3 Q4 Q1

2015/2016 2016/2017

US $bnMain Items of Current Account

Trade Balance Services Balance Income Balance

Net Current Transfers Current Account

-61-

Merchandise import payments declined by 5.5 percent, registering US$

13.9 billion (against US$ 14.7 billion), owing to the drop in both non-oil imports by US$ 583.3 million and oil imports by US$ 227.2 million.

Against this background, the coverage ratio of merchandise exports to

merchandise imports went up to 37.8 percent in the period under review (from 32.1 percent in the period of comparison). This will be thoroughly illustrated hereafter in the commodity structure of foreign trade.

5/2/1/2- Balance of Services

The services surplus retreated by 50.2 percent to US$ 1.4 billion (against US$

2.8 billion), as a consequence of the drop in services receipts and the rise in services payments, as shown below:

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

Q1 Q2 Q3 Q4 Q1

2015/2016 2016/2017

US$ bn Trade Balance

Exports Imports Trade Balance

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Q1 Q2 Q3 Q4 Q1

2015/2016 2016/2017

US$ bnServices Balance

Services Receipts Services Payments Services Balance

-62-

1- Services Receipts

Services receipts declined by 25.3 percent to US$ 3.8 billion (against US$

5.0 billion), on the back of the drop in most items, as follows:

Tourism revenues by 56.1 percent to only US$ 758.2 million (against US$ 1.7 billion), owing to the fall in the number of tourist nights by 61.3 percent to 9.2 million nights (against 23.7 million), notwith-standing the pickup in the average spending per tourist a night from US$ 72.7 to US$ 82.5.

Transportation receipts by 11.4 percent to US$ 2.3 billion (against US$ 2.6 billion). This was ascribed to the retreat in the receipts of Egyptian aviation and navigation companies. Another factor that added to the drop in transportation receipts was the decrease in Suez Canal transit receipts by 4.8 percent to US$ 1.3 billion (against US$ 1.4 billion), reflecting the decline in net tonnage of transiting vessels by 2.7 percent and the depreciation of SDR versus the US dollar by 0.4 percent.

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.00.20.40.60.81.01.21.41.61.82.0

Q1 Q2 Q3 Q4 Q1

2015/2016 2016/2017

%US$ bn

Travel Receipts as a percentage of GDP

Travel Receipts Travel Receipts as a percentage of GDP

1.4

1.3

1.2 1.21.3

1.01.11.11.21.21.31.31.41.41.51.5

Q1 Q2 Q3 Q4 Q1

2015/2016 2016/2017

US$ bn

Suez Canal Receipts

-63-

Government receipts by 49.3 percent to only US$ 62.5 million

(against US$ 123.2 million), mirroring the fall in other government receipts, as well as the expenses of foreign embassies in Egypt.

On the other hand, the other services receipts increased by 9.2 percent to US$ 603.0 million (against US$ 552.1 million), resulting from the pickup in services receipts of culture & recreation and renting of films; advertising services and marketing researches; and legal & consultation fees.

2- Services Payments

Services payments moved up by 6.6 percent to US$ 2.4 billion (from US$ 2.2 billion), as a result of the following developments:

The rise in travel payments by 39.6 percent to US$ 1.1 billion (from US$ 791.5 million), driven by the surge in e-card payments abroad by 93.6 percent to US$ 767.7 million (from US$ 396.5 million). Add to this the rise in tourism and medical treatment costs; and payments of tourism companies and hotels abroad.

The decline in transportation payments by 19.7 percent to US$ 306.2 million (from US$ 381.5 million), due to the drop in the amounts transferred for repairing airplanes at foreign airports; those transferred by foreign navigation companies; and those transferred for renting ships.

The decrease in other services payments by 7.7 percent to register US$ 785.2 million (from US$ 850.8 million), due to the fall in the amounts transferred abroad for construction and contracting services; insurance services; communications services; and royalties & license

fees.

The retreat in government expenditures by 14.4 percent to US$ 157.0 million (from US$ 183.5 million), owing to the decline in salaries & expenses of government employees seconded abroad and expenses of Egyptian embassies abroad.

-64-

5/2/1/3- Investment Income Balance

Investment income deficit rolled back by 2.6 percent, to only US$ 1.12

billion (against US$ 1.15 billion), mainly as an outcome of the following developments:

- The decrease in investment income receipts by 19.4 percent to US$

81.6 million (against US$ 101.2 million), because of the retreat in both profit transfers from branches abroad and interest payments and dividends of bonds and securities.

- The decline in investment income payments by 4.0 percent to US$

1.2 billion (against US$ 1.3 billion), driven by the retreat in profit transfers of foreign petroleum companies & foreign companies operating in Egypt; transfers of interest payments & dividends of bonds and securities; and interest payments by EGPC.

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

Transportation Travel Government Services Other Services

US$ bn

Services Balances (Surplus/Deficit) July/September

2015/2016

2016/2017

-1.6-1.4-1.2-1.0-0.8-0.6-0.4-0.20.00.20.4

Q1 Q2 Q3 Q4 Q1

2015/2016 2016/2017

US$ bnInvestment Income Balance

Investment Income Receipts Investment Income PaymentsInvestment Income Balance

-65-

5/2/1/4- Net Unrequited Current Transfers

Unrequited current transfers (net) stepped back by 21.3 percent to US$

3.39 billion (from US$ 4.32 billion), as a consequence of the following developments:

- The retreat in net private transfers to US$ 3.36 billion (from US$ 4.29

billion), due to the decline in remittances from Egyptians working abroad by 22.3 percent.

- The rise in net official transfers to US$ 33.8 million (from US$ 21.9

million), because of higher cash grants received by the Egyptian government.

5/2/2- Capital and Financial Account

During July/Sept. 2016/2017, the capital and financial account achieved a

net inflow of US$ 7.1 billion (against US$ 1.6 billion), as a reflection of the following developments:

The net inflow of FDI in Egypt scaled up to US$ 1.9 billion (against

US$ 1.4 billion). This was a result of the hike in net inflows of oil sector investments by US$ 341.4 million, reaching US$ 495.5 million (against US$ 154.1 million). Add to this the rise in net greenfield investments by 23.9 percent, to US$ 1.4 billion (against US$ 1.1 billion).

00.20.40.60.811.21.41.6

0.00.51.01.52.02.53.03.54.04.55.0

Q1 Q2 Q3 Q4 Q1

2015/2016 2016/2017

%US $bn

Egyptian Workers’ Remittances as a Percentage of GDP

Egyptian Workers’ Remittances Egyptian Workers’ Remittances as a Percentage of GDP

-66-

The following table shows the sectoral distribution of total FDI flows to

Egypt during the periods of review and comparison:

(US$ mn)

Activity Sector July/Sept.

2015/2016* Share

(%) 2016/2017* Share

(%)

Total FDI Flows to Egypt 2904.7 100.0 3431.0 100.0

1- Oil 1552.1 53.4 1813.5 52.9

2- Manufacturing 235.6 8.1 50.4 1.5

3- Agriculture 0.3 0.0 0.2 0.0

4- Construction 6.8 0.3 33.5 1.0

5- Services, of which: 270.8 9.3 375.4 10.9

Real estate 39.8 1.4 24.7 0.7

Finance 8.1 0.3 148.7 4.3

Tourism 0.8 0.0 0.9 0.0

Communications & IT 53.1 1.8 1.9 0.1

Other services 169.0 5.8 199.2 5.8

6- Undistributed 839.1 28.9 1158.0 33.7 * Preliminary.

Portfolio investment in Egypt achieved a net outflow of US$ 840.9 million (against US$ 1.4 billion). This was primarily due to the Egyptian authorities' repayment of bonds that had fallen due in the reporting period in the amount of US$ 1.0 billion (outflow).

Medium- and long-term loans and facilities unfolded net disburse-ments of US$ 855.5 million (against net repayments of US$ 573.0 million), as an outcome of the increase in total disbursements to US$ 1.8 billion (against US$ 311.1 million) and in total repayments to US$ 976.2 million (against US$ 884.1 million).

Short-term suppliers' credit posted net disbursements of US$ 454.8 million (against US$ 1.4 billion).

-67-

Other assets and liabilities (the change in banks' foreign assets and liabilities; the CBE non-reserve foreign assets and foreign liabilities; and the counterpart to some items included in the current account) recorded a net inflow of US$ 4.8 billion (against US$ 915.3 million). This was primarily a result of the pickup in the net change in liabilities of the CBE to the external world, registering a net inflow of US$ 3.4 billion in the reporting period (against US$ 1.2 million).

The net change in banks' liabilities rose, recording as such a net

inflow of US$ 1.6 billion (against US$ 668.9 million).

-2.0-1.5-1.0-0.50.00.51.01.52.02.53.0

Q1 Q2 Q3 Q4 Q1

2015/2016 2016/2017

US $bn

Net Foreign Investments in Egypt

Net FDI in Egypt Net Portfolio Investment in Egypt

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5/3 - Foreign Trade

In July/Sept. 2016/2017, Egypt's foreign trade declined to US$ 19.2 billion (against US$ 19.5 billion in the same period of the previous FY), constituting 5.2 percent of GDP. The retreat comes on the back of the increase in export proceeds by US$ 530.3 million to US$ 5.3 billion, or 1.4 percent of GDP (due to the rise in non-oil exports by US$ 666.7 million). In addition, import payments declined by US$ 810.5 million to US$ 13.9 billion or 3.8 percent of GDP (because of the drop in non-oil imports by US$ 583.3 million). Consequently, the trade deficit narrowed to US$ 8.7 billion (US$ 1.1 billion were oil balance deficit) compared to US$ 10.0 billion.

5/3/1- Structure of Export Proceeds and Import Payments

First: Export Proceeds by Degree of Processing*:

Export proceeds increased by US$ 530.3 million, mainly due to the rise in

the exports of both semi-finished goods by US$ 389.6 million, and finished goods by US$ 271.1 million. Meanwhile, exports of fuel, mineral oils and products declined by US$ 95.5 million, as well as exports of raw materials by US$ 37.1 million.

_______________________________ * Table 5/2 in the statistical annex shows the distribution of merchandise exports by degree of

processing.

Fuel,Mineral Oils

& products 30.1%

Raw Materials

7.0%Semi-

Finished Goods18.1%

Finished Goods 44.8%

Relative Structure of Exports Merchandise Group

July/September 2016/2017

0.0

1.0

2.0

3.0

4.0

Finished Goods Fuel,Mineral Oils& Products

Semi-FinishedGoods

Raw Materials

Exports by Degree of Processing

July/September

2014/2015 2015/2016 2016/2017

US$ bn

-69-

Hereunder is a detailed review of the exports of different merchandise groups:

A) Semi-Finished Goods:

Exports of this group increased by 69.2 percent to US$ 952.7 million. This was ascribed to the rise in the exports of gold by US$ 415.6 million to US$ 575.5 million.

B) Finished Goods:

Exports of this group rose by 13.0 percent, to US$ 2.4 billion. This was attributable to the surge in exports of some goods, mainly; phosphate and mineral fertilizers; milk and dairy products; medicines, serums and vaccines; and cane sugar.

C) Fuel, Mineral Oils and Products:

Exports of this group moved down by 5.7 percent to US$ 1.6 billion. This was ascribed to the 19.3 percent drop in crude oil exports (57.3 percent of total exports) to US$ 908.0 million. However, exports of oil products (39.0 percent of total exports) rose by 15.0 percent to US$ 617.9 million.

D) Raw Materials:

Exports of raw materials decelerated by 9.2 percent to US$ 368.0 million. That was attributed to the lower exports of some goods, mainly, fresh or chilled or cooked vegetables; mineral substances; and potatoes for sowing.

Second: Merchandise Imports by Degree of Use*:

Import payments retreated by US$ 810.5 million in the period under review. That was an outcome of the drop in the imports of investment goods by US$ 856.2 million; raw materials by US$ 268.9 million; fuel, mineral oils and products by US$ 213.4 million; and consumer goods by US$ 49.8 million. In contrast, imports of intermediate goods picked up by US$ 58.2 million.

________________________

* Table 5/3 in the statistical annex shows the distribution of merchandise imports by degree of use.

Fuel,Mineral

Oi l s & Products

18.9%

Raw Materials9.6%

Intermediate

Goods24.9%

Investment

Goods15.7%

Consumer

Goods25.4%

Undestributed Goods

5.5%

Relative Structure Of Imports Merchandise GroupJuly/September 2016/2017

0.0

1.0

2.0

3.0

4.0

5.0

Fuel, MineralOils &

Products

RawMaterials

IntermediateGoods

InvestmentGoods

ConsumerGoods

Imports by Degree of UseJuly/September

2014/2015 2015/2016 2016/2017

US$ bn

-70-

Hereunder is a detailed review of the imports of different merchandise

groups:

A) Investment Goods:

Imports of this group stepped down by 28.2 percent to US$ 2.2 billion. That was attributed to the decline in the imports of some goods, mainly; cinematographic cameras; appliances for telephone and communications; and cranes and winches.

B) Raw Materials:

Imports of this group decreased by 16.8 percent to US$ 1.3 billion. This was ascribed to the decline in the imports of maize (not for sowing); bamboo charcoal ; wheat; plants and parts thereof; and raw cane sugar. C) Fuel, Mineral Oils and Products:

Imports of this group decreased by 7.5 percent to US$ 2.6 billion, due to the drop in the imports of crude oil (7.2 percent of total imports of this group) by 53.5 percent; and the slight decrease in oil products (90.6 percent) by 0.3 percent.

-71-

D) Intermediate Goods:

Imports of intermediate goods increased by 1.7 percent to US$ 3.5 billion because of higher imports of some goods, mainly animal and vegetable fats, greases, and oils; iron and steel (unalloyed); and hot and cold flat-rolled products. E) Consumer Goods:

Imports of consumer goods declined by 1.4 percent to US$ 3.5 billion, on the back of the following developments: - Durable consumer goods fell by 9.5 percent to US$ 976.5 million, due to the

decline in the imports of some goods, mainly: cars for passengers; and televisions.

- Non-durable consumer goods rose by 2.1 percent to US$ 2.6 billion, due to

the increase of the imports of some goods, mainly: meat and offals; live, fresh, chilled or dried crustaceans; medicines; articles for the conveyance or packing of goods.

5/3/2- Sectoral Distribution of Merchandise Transactions

On the level of economic sectors, the total volume of foreign trade of the

public sector decreased by 14.2 percent in July/Sept. 2016/2017, whereas that of the investment sector inched up by 12.7 percent, and that of the private sector by 2.0 percent. In the meantime, the share of the public sector rolled back to 24.1 percent (against 27.6 percent) of total foreign trade. Meanwhile, the share of the private sector augmented to 64.8 percent (against 62.7 percent) and that of the investment sector to 11.1 percent (against 9.7 percent).

-72-

Hereunder is a detailed review of export proceeds and import payments by

economic sector:

A) The Private Sector Export proceeds of the private sector inched up by US$ 596.8 million to

US$ 3.9 billion in the reporting period. This comes on the back of the increase in exports of gold by US$ 418.6 million; mineral and phosphate fertilizers by US$ 72.8 million; and milk and dairy products by US$ 46.3 million. Main exports of this sector were represented in crude oil; household electric app-liances; textiles; and ready-made clothes.

Meanwhile, imports of this sector decreased by US$ 356.5 million to US$

8.5 billion. This came on the back of the fall in the imports of spare parts for machinery and appliances by US$ 170.6 million; bamboo charcoal by US$ 161.8 million; and maize (not for sowing) by US$ 158.5 million. Main imports of this group were meat and offals; passenger cars; parts and accessories for cars and tractors. B-The Investment Sector

Export proceeds of investment sector augmented by US$ 231.2 million to

US$ 892.6 million. This was mainly attributable to the rise in the exports of oil products (61.1 percent of total exports of this sector) by US$ 298.5 million. The main non-oil exports were propylene polymers; textiles; and carpets and floor coverings.

Foreign Trade US$ 19.2 billion

Public Sector US$ 4.7 billion

Private Sector US$ 12.4

billion

Investment Sector

US$ 2.1 billion

Exports US$ 0.5 billion

Imports US$ 4.2 billion





-73-

Likewise, import payments of this sector mounted by US$ 9.5 million to

US$ 1.2 billion. That was attributed to the rise in imports of household electric appliances by US$ 105.2 million; crude oil by US$ 84.6 million; and liquid and air pumps by US$ 27.9 million. Main imports were represented in household electric appliances; liquid and air pumps; and televisions.

C) The Public Sector

Export proceeds of the public sector retreated by US$ 297.7 million to US$ 448.8 million. That was mainly attributed to the decrease in exports of both oil products (6.2 percent of total exports of this sector) by US$ 183.5 million, and crude oil (79.5 percent) by US$ 109.2 million. Its key non-oil exports were aluminum and its products; and gold.

Similarly, import payments of this sector rolled back by US$ 463.5 million

to US$ 4.2 billion. This was mainly due to the decline in the imports of crude oil (2.5 percent of the total imports of this sector) by US$ 271.4 million, of wheat by US$ 145.4 million, and of communications and telephone equipment by US$ 31.8 million. The key imports of this sector were oil products; animal and vegetable fats, oils, and greases; electricity generators; and medicines.

5/3/3- Geographical Distribution of Merchandise Transactions

Egypt's foreign trade with Russian Federation and the Commonwealth of

Independent States decreased by 52.7 percent, the Asian (non-Arab) countries by 7.4 percent, and the EU countries by 6.9 percent. Meanwhile, it increased with the USA by 36.1 percent, other countries and regions by 34.1 percent, other EU countries by 18.0 percent, African (non-Arab) countries by 15.5 percent, and the Arab countries by 2.5 percent.

Country ranking in terms of the relative importance of trade exchange with

Egypt ran as follows: the UAE ranked first (7.8 percent), followed by the USA (7.0 percent), China (6.3 percent), Saudi Arabia (5.4 percent), Italy (5.3 percent), Germany (4.7 percent), the UK (4.3 percent), and Switzerland (3.7 percent). These countries combined represented 44.5 percent of the total volume of foreign trade.

Table (5/4) in the statistical section illustrates the geographical distribution of imports and exports.

-74-

The geographical distribution of export proceeds shows that the Arab

countries came in the lead (31.4 percent), followed by the EU countries (29.5 percent), and other countries and regions (11.0 percent). At the level of countries, the UAE came on top, followed by the USA, Italy, the UK, Lebanon, Switzerland, Saudi Arabia, and Germany with a combined share of 54.5 percent of total export proceeds.

Turning to import payments, the EU countries ranked first (28.6 percent),

followed by the Asian (non-Arab) countries (20.6 percent), and the Arab countries (19.2 percent). Concerning the order of countries, China was the main exporter, followed by the USA, Saudi Arabia, the UAE, Germany, Italy, Russia, Switzerland, the UK, Qatar, and France with a combined share of 52.1 percent of total imports.

0.0

1.0

2.0

3.0

4.0

5.0

EU ArabCountries

AsianCountries(non-Arab)

OtherEuropeanCountries

OtherCountries &

Regions

USA RussianFederation

AfricanCountries(non-Arab)

US$ bn

Imports by Geographical DistributionJuly/September

2015/2016 2016/2017

0.0

0.5

1.0

1.5

2.0

EU Arab Countries AsianCountries (non-

Arab)

USA OtherCountries &

Regions

OtherEuropeanCountries

RussianFederation

AfricanCountries (non-

Arab)

US$ bn Exports by Geographical DistributionJuly/September

2015/2016 2016/2017

-75-

5/3/4 - Breakdown of Trade by Main Merchandise Group

In July/Sept. 2016/17, the volume of trade exchange of the following groups decreased: textiles and products thereof by 10.8 percent; the electric machinery, appliances and equipment and parts thereof by 10.3 percent; crude oil and products by 8.1 percent; vehicles, cars, and other means of transportation by 6.3 percent; and cereals and mill products by 5.2 percent. However, the volume of trade exchange of foodstuffs (excluding cereals) inched up by 12.3 percent; chemicals by 9.9 percent, and base metals and products by 2.0 percent. In the meantime, crude oil and its products contributed 21.4 percent to the total volume of trade, followed by electric machinery, appliances and equipment and parts thereof (14.3 percent); and foodstuffs (12.1 percent).

As for export proceeds by main commodity, crude oil and its products came

first (29.0 percent), followed by foodstuffs, excluding cereals(15.5 percent), and electric machinery, appliances and equipment and parts thereof (9.2 percent).

In terms of imports, crude oil and its products ranked first (18.5 percent),

followed by electric machinery, appliances and equipment and parts thereof (16.3 percent), and foodstuffs, excluding cereals (10.8 percent).

0.0

0.5

1.0

1.5

2.0

Oil Foodstuffs

(Excl. Cereals)

Textile

Materials &Art iclesThereof

Cereals &

MillingProducts

Vehicles, Cars

& Means ofTransportat ion

Chemicals Base Metals &

Products

Elect rical

Machinery &equipment &parts thereof

Exports by Main CommoditiesJuly/September

2015/2016 2016/2017

US$ bn

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Oil Foodstuffs(Excl.

Cereals)

TextileMaterials &

ArticlesThereof

Cereals &Milling

Products

Vehicles, Cars& Means of

Transportation

Chemicals Base Metals &Products

ElectricalMachinery &equipment &parts thereof

Imports by Main CommoditiesJuly/September

2015/2016 2016/2017

US$ bn

-76-

5/4- International Finance

According to the international finance data during July/Sept. 2016/2017,

international finance recorded a net inflow of US$ 4.0 billion (against US$ 6.4 million in the previous corresponding period). This was an outcome of the following developments:

- Net resources from abroad (inflows) rose to US$ 5.1 billion (from US$ 1.1 billion). Most of the increase was due to the rise in net external borrowing by US$ 2.9 billion and FDI in Egypt by US$ 515.2 million.

- Net outflow of interest payments and profit transfers retreated by US$ 11.6 million to US$ 1.1 billion.

Net International Finance from Abroad

(US$ mn) July/Sept. 2015/2016 2016/2017* Change + (-)

Net International Finance from Abroad (A+B) 6.4 4024.4 4018.0

A- Resources from Abroad (inflow) 1122.6 5129.0 4006.4

1- Official grants (net) 21.9 33.8 11.9

2- External borrowing (net)** 1154.4 4098.2 2943.8

3- FDI in Egypt (net) 1357.0 1872.2 515.2

4- Portfolio investment in Egypt (net) (1405.8) (840.9) 564.9

5- FDI abroad (40.3) (62.0) (21.7)

6- Portfolio investment abroad (net) 35.4 27.7 (7.7)

B- Interest Payments and Profit Transfers (outflow) (1116.2) (1104.6) 11.6

1- Net profit transfers of investment in securities (46.0) (28.3) 17.7

2- Net profit transfers of FDI (936.9) (907.2) 29.7

3- Interest on external loans and facilities (143.2) (213.1) (69.9)

4- Net interest on deposits 9.9 44.0 34.1 * Provisional. ** Including non-resident deposits

-2000

-1000

0

1000

2000

3000

4000

5000

2014/2015 2015/2016 2016/2017

)US$ mn.(


during July/Sept.

Net Interest Payments and Profit Transfers

Total Net Resources from Abroad


-77-

5/4/1- Foreign Direct Investment (FDI) in Egypt

During July/Sept. 2016/2017, net FDI in Egypt rose by US$ 515.2 million

(inflow), compared to the corresponding period of the previous FY, to US$ 1.9 billion. This was mainly a result of the increase in investment inflows by US$ 526.3 million to US$ 3.4 billion and capital repatriation by US$ 11.1 million to US$ 1.5 billion.

Geographical Distribution of FDI in Egypt

(US$ mn)

July/Sept. 2015/2016 2016/2017* Change

Net Flows of FDI in Egypt (A-B) 1357.0 1872.2 515.2

A-Total Inflows 2904.7 3431.0 526.3

USA 233.1 499.1 266.0 EU Countries 2003.3 2000.9 (2.4) Arab Countries 350.0 707.3 357.3 Other Countries 318.3 223.7 (94.6)

B-Capital Repatriation** 1547.7 1558.8 11.1

* Provisional. ** Capital repatriation means that a direct investor recovers his share in the capital of an investment enterprise -

in case of partial or full disposal - and transfers part or all of it abroad.

The surge in investment inflows, during the period under review, was a dual effect of the increase in flows from the Arab countries by US$ 357.3 million to US$ 707.3 million, and from the USA by US$ 266.0 million to US$ 499.1 million; and the retreat in flows from the EU countries by US$ 2.4 million to US$ 2.0 billion and from the rest of the world by US$ 94.6 million to US$ 223.7 million.

The sectoral distribution

of total FDI inflows, during the period under review, reveals that the oil sector attracted 52.9 percent of the total, followed by services (10.9 percent), manufacturing (1.5 percent), and finally construction (1.0 percent).

Manufacturing

Sector1.5%Construction

Sector1.0%

Petroleum Sector52.9%

Undistributed

33.7%

Other Services5.8%

Communication

Services0.1%

Real State Sector

0.7%Financial Sector

4.3%

Services% 10.9

Total FDI in Egypt by Economic Sector

During July/Sept. 2016/2017

United Kingdom

7.6%

Germany3.9%

USA58.1%

O ther 16.4%

Belgium11.8%

Jordan0.2%

Kuwait2.0%

Geographical distribution of net inflow of official grants during July/Sept. 2016/2017

-78-

The breakdown of total FDI inflows by investment purpose reveals that petroleum investments took the lead, with a share of US$ 1.8 billion or 52.9 percent of the total. Greenfield investments followed with a share of US$ 1.6 billion (46.4 percent), then investments resulting from transfers for buying real estates with US$ 24.7 million (0.7 percent).

Net inflow of official

grants rose to US$ 33.8 million in July/September 2016/2017 (against US$ 21.9 million). In figures, cash grants accounted for US$ 18.3 million and in-kind grants for US$ 22.5 million. Official grants transferred abroad dec-reased to US$ 7.0 million (against US$ 9.8 million).

According to the data of the Ministry of International Cooperation, total

grant commitments went down by US$ 119.2 million to US$ 26.1 million during July/September 2016/2017.

5/4/2- External Official Grants

1.871.361.32

0.78

-2

0

2

4

2016/20172015/20162014/20152013/2014

)US$bn(

Net FDI in Egyptduring July/Sept.

Outflows Proceeds From Selling Local Entities to non-residents

Petroleum Sector Transfers For Buying Real Estates

Green Field Inverstment Net Foreign Direct Inverstment in Egypt

-79-

Official Grants: New Commitments and Net Actual Flows

(US$ mn)

July/Sept. Actual Flows Commitments

2015/2016 2016/2017* 2015/2016 2016/2017* Net Inflows (A-B) 21.9 33.8 Inflows: 31.7 40.8 145.3 26.1 USA 28.4 23.7 142.9 0.0 Japan 0.0 0.0 0.0 20.0 France 0.0 0.0 0.0 1.1 Germany 2.4 1.6 0.0 0.0 UK 0.0 3.1 0.0 0.0 Belgium 0.0 4.8 0.0 0.0 MENA Transition Fund 0.0 0.0 0.0 5.0 African Development Bank 0.0 0.0 0.7 0.0 Other Countries & Organizations 0.5 6.7 0.0 0.0 Outflows 9.8 7.0 0.0 0.0

* Provisional

As for the sectoral distribution of grant commitments, they are expected

to reach US$ 26.1 million and to be entirely directed to the services sectors (mostly to education, health and general government), as illustrated in the following table:

Breakdown of Official Grant Commitments By Beneficiary

(US$ mn)

Sector July/Sept. Change

2015/2016 % 2016/2017* % +(-)

Total 145.3 100.0 26.1 100.0 (119.2)

Productive Sectors 25.6 17.6 0.0 0.0 (25.6)

Agriculture & irrigation 25.6 17.6 0.0 0.0 (25.6)

Services Sectors 119.7 82.4 26.1 100.0 (93.6)

General government 51.2 35.3 5.0 19.2 (46.2)

Education and health 49.0 33.7 20.0 76.6 (29.0)

Others 19.5 13.4 1.1 4.2 (18.4)

* Provisional

Long -term debt

58.6%Medium -term debt

28.2%

Short -term debt

13.2%

External Debt Structure by Original MaturityEnd of Sept. 2016

-80-

5/4/3- External Debt

Total external debt (all maturities) rose by US$ 4.4 billion or 7.9 percent, to

US$ 60.2 billion at end of September 2016 (against US$ 55.8 billion at end of June 2016). This was traced to the rise in net disbursements of loans and facilities by US$ 4.3 billion, as well as the appreciation of most currencies of borrowing versus the US dollar, causing the debt balance to increase by US$ 0.1 billion. External debt service (medium- & long-term) reached US$ 2.5 billion in July/September 2016/2017, including principal repayments (US$ 2.2 billion) and interest payments (US$ 0.3 billion). A- Structure of External Debt

The data on external debt by original maturity indicate that long- and medium-term debts (guaranteed and non-guaranteed) amounted to US$ 52.2 billion at end of September 2016 (representing 86.8 percent of total external debt). In figures, long-term debt made up US$ 35.2 billion, while medium-term debt constituted US$ 17.0 billion, mostly bonds issued abroad. Short-term debt accounted for US$ 8.0 billion or 13.2 percent of the total, as shown in the opposite chart: Below are the main components of medium and long-term debt:

- Long-term loans to Paris Club members (rescheduled or non-rescheduled) amounted to US$ 8.3 billion or 13.8 percent of total external debt at end of Sept. 2016. In the meantime, debt to countries other than Paris Club members reached US$ 1.9 billion or 3.2 percent.

- Buyers', suppliers' and liquidity support facilities* posted US$ 5.1 billion or 8.4 percent of total debt.

- Debt to international and regional organizations increased by US$ 1.5 bilion to post US$ 15.6 billion (25.9 percent of total debt).

______________________________ * Including the liquidity support facility provided by the China Development Bank to the Central Bank of Egypt

-81-

- The balance of Egyptian bonds and notes floated abroad (held by non-residents) posted US$ 2.7 billion or 4.4 percent of the total. It consisted of the following:

Sovereign bonds issued by the government in April 2010, at a value of

US$ 884.4 million, and falling due over two tranches by 2020 and 2040.

Government bonds* issued in June 2012, at a value of US$ 500

million, and falling due in June 2017.

Global Medium-Term Notes (GMTN) issued at a value of US$ 1.3 billion, and falling due in 2025.

- Long-term deposits of non-residents reached US$ 18.6 billion or 30.9

percent of total external debt at end of September 2016 (representing Arab countries' deposits at the CBE).

- Non-guaranteed debt of the private sector decreased to US$ 136.7 million

or 0.2 percent of total external debt (against US$ 195.4 million at end of June 2016.

Short-term debt increased by US$ 948.1 million, to US$ 8.0 billion or 40.7

percent of NIRs (as per the original maturity dates), due to the pickup in both cash loans and short-term trade facilities by US$ 189.5 million, to US$ 5.7 billion; and short-term deposits of non-residents by US$ 758.6 million to US$ 2.3 billion. B- External Debt by Debtor

The data of external debt by debtor at end of September 2016 showed the following developments:

- Debt of the monetary authority

increased by US$ 3.4 billion to US$ 25.6 billion, other sectors by US$ 1.0 billion to US$ 6.2 billion, and banks by US$ 142.9 million to US$ 4.1 billion.

____________________________ * Issued by the Ministry of Finance for the Saudi Fund for Development.

0

20

40

60

80

2014 2015 2016

(US$ bn)

External Debt by DebtorEnd of Sept.

Other Sectors Banks

Monetary Authority Central & Local Government

-82-

- Debt of the central and local government retreated by US$ 219.9 million to US$ 24.2 billion (40.3 percent of total external debt).

C- External Debt by Main Creditor

The breakdown of external

debt by creditor revealed that 37.4 percent of total debt balance was owed to the Arab countries; topped by the UAE (12.9 percent), Saudi Arabia (12.0 percent) and Kuwait (8.3 percent), while 19.2 percent was owed to five main Paris Club members; namely Germany (8.1 percent), Japan (4.1 percent), USA (3.1 percent), France (2.0 percent), and UK (1.9 percent).

D- External Debt by Borrowing Currency

The breakdown of the currency

composition of external debt revealed that the US dollar accounted for the largest share of total external debt, with a relative importance of 72.6 percent, because of the outstanding obligations in US dollar to creditors other than the USA. The euro came next with a share of 12.9 percent, followed by the Japanese yen and SDRs (4.2 percent each), then the Kuwaiti Dinar (4.0 percent).

-3-2-101234

2014/2015 2015/2016 2016/2017

(US$ bn)

External Debt by DebtorShare in total increase/decrease

during July/Sept.

Central & Local Government Monetary Authority

Banks Other Sectors

International & regional

organizations25.9%

Egyptian bonds and

notes4.4%

Arab Countries

37.4%

Germany8.1%

Japan4.1%

USA3.1%

France2.0%

United Kingdom

1.9%

Other countries

13.1%

External Debt by CreditorEnd of Sept. 2016

US dollar 72.6%

Euro12.9%

Japanese yen4.2%

SDRs4.2%

Kuwaiti dinar4.0%

Swiss franc0.3%

Other currencies

1.8%

External Debt structure by Currencies

End of Sept. 2016

-83-

E- External Debt Service

During July/Sept. 2016/2017, the service payments of external debt (medium and long-term) amounted to US$ 2.5 billion. Principal repayments accounted for US$ 2.2 billion and interest payments for US$ 0.3 billion (including interest on deposits and bonds during the period). F- Main Indicators of External Debt

Indicators of external debt during July/Sept. 2016/2017, as compared with the corresponding period of the previous FY, manifested that the ratio of external debt to GDP rose to 16.3 percent at end of September (from 13.2 percent). Also, the ratio of short-term debt to NIRs went up to 40.7 percent (from 17.1 percent) and its ratio to total external debt to 13.2 percent (from 6.1 percent). The external debt per capita increased to US$ 618.2 (from US$ 474.3); and so did the ratio of external debt service to exports of goods and services to 27.2 percent (from 23.8 percent).

G- New Commitments on Loans and Facilities

During July/Sept. 2016/2017, new commitments on loans and facilities reached US$ 40.0 million (against US$ 43.6 million in the previous corres-ponding period).

19.7

27.2

40.7

13.2

05

1015202530354045

2014/2015 2015/2016 2016/2017

%

External Debt Indicators

during July/Sept.

Debt Service / Current ReceiptsDebt Service / Exports of Goods and ServicesShort-term Debt / Net International ReservesShort-term Debt / Total External Debt

40.3

16.3

618.2

0

100

200

300

400

500

600

700

0

10

20

30

40

50

60

70

2014/2015 2015/2016 2016/2017

% (US$)

Government External Debt / External Debt

External Debt /GDP

External Debt per capita (US$) (right axis)

-85-

Statistical Section

(1) Indicators of Development and Economic Growth

(1/1) GDP at Factor Cost by Economic Sector (at 2011/2012 Prices) (1/2) GDP by Expenditure (at 2011/2012 Prices) (1/3) Consumer Price Index (Urban Population) (January 2010 = 100) (1/4) Producer Price Index (2004/2005 = 100)

(2) Monetary Aggregates

(2/1/1) CBE Financial Position: Reserve Money and Counterpart Assets (2/1/2) Banking Survey: Domestic Liquidity and Counterpart Assets (2/1/3) Banking Survey: Deposits in Local Currency (2/1/4) Banking Survey: Deposits in Foreign Currencies (2/1/5) Banking Survey: Foreign Assets and Liabilities (2/1/6) Banking Survey: Domestic Credit / Other Items (Net) (2/1/7) Total Saving Vessels (2/1/8) Bank Lending and Discount Balances to Business Sector

Financial Sector

(2/2) Structure of the Egyptian Banking System

Activity of the Banking System

Central Bank of Egypt

(2/3/1) Note Issued by Denomination (2/3/2) Currency in Circulation outside CBE by Denomination (2/3/3) CBE: Transactions via RTGS and SWIFT

-86-

Banks

(2/4/1) Aggregate Financial Position (2/4/2) Deposits by Maturity (2/4/3) Deposits by Sector (2/4/4) Deposits by Economic Activity (2/4/5) Portfolio Investments by Sector (2/4/6) Lending and Discount Balances by Sector (2/4/7) Credit by Sector (2/4/8) Lending and Discount Balances by Economic Activity

Interest Rates

(2/5/1) Discount and Interest Rates on Deposits and Loans in Egyptian Pound (2/5/2) Domestic Interest Rates on 3- Month Deposits in Major Currencies (2/5/3) Interest Rates on Treasury Bills (Weekly Weighted Averages)

(3) Non-Banking Financial Sector

(3/1) The Egyptian Exchange (3/2) Trading in Shares on the Egyptian Exchange (3/3) Trading in Bonds on the Egyptian Exchange (3/4) Foreigners' Transactions on the Egyptian Exchange (3/5) Global Depository Receipts (GDRs) (3/6) Outstanding Balance of Treasury Bills (Quarterly) (3/7) Outstanding Balance of Treasury Bills (Weekly)

(4) Public Finance & Domestic Public Debt

(4/1) Consolidated Fiscal Operations of the General Government (Total Revenues) (4/2) Consolidated Fiscal Operations of the General Government (Total Expenditures) (4/3) Summary of the Consolidated Fiscal Operations of the General

Government (4/4) Gross Domestic Debt (4/5) National Investment Bank (Resources & Uses)

-87-

(5) External Transactions

(5/1) Balance of Payments (US$)

(5/2) Exports by Degree of Processing

(5/3) Imports by Degree of Use

(5/4) Regional Distribution of Exports and Imports

(5/5) Average Exchange Rates (in LE per foreign currency unit)

(5/6) External Debt Structure

(5/7) Distribution of External Debt by Currencies

(LE mn)

2015/2016 2016/2017 2016/2017Public Private Total Public Private Total Public Private Total

Total GDP 160658.3 333084.7 493743.0 161041.1 341281.9 502323.0 0.2 2.5 1.7

Agriculture, Forests & Fishing 49.4 65966.1 66015.5 52.4 67945.1 67997.5 6.1 3.0 3.0

Extractions 45227.5 13909.5 59137.0 43774.7 13379.6 57154.3 (3.2) (3.8) (3.4)

Oil 23833.4 4205.9 28039.3 22720.4 3804.8 26525.2 (4.7) (9.5) (5.4)

Gas 21072.6 4012.9 25085.5 20719.9 3713.4 24433.3 (1.7) (7.5) (2.6)

Others 321.5 5690.7 6012.2 334.4 5861.4 6195.8 4.0 3.0 3.1

Manufacturing Industries 21455.7 54540.7 75996.4 19144.1 55615.9 74760.0 (10.8) 2.0 (1.6)

Oil refining 15638.4 700.9 16339.3 13198.8 591.6 13790.4 (15.6) (15.6) (15.6)

Others 5817.3 53839.8 59657.1 5945.3 55024.3 60969.6 2.2 2.2 2.2

Electricity 7488.6 1180.3 8668.9 7638.4 1203.9 8842.3 2.0 2.0 2.0

Water, Sanitation and Recycling 2667.2 297.8 2965.0 2755.2 304.9 3060.1 3.3 2.4 3.2

Construction & Building 2020.8 18348.3 20369.1 2154.1 19890.3 22044.4 6.6 8.4 8.2

Transportation & Storage 4124.7 17750.6 21875.3 4392.8 18500.6 22893.4 6.5 4.2 4.7

Communication 2707.9 10899.7 13607.6 3010.1 12116.0 15126.1 11.2 11.2 11.2

Information 115.0 1462.6 1577.6 120.2 1529.9 1650.1 4.5 4.6 4.6

Suez Canal 8974.5 0.0 8974.5 8815.4 0.0 8815.4 (1.8) 0.0 (1.8)

Wholesale & Retail Trade 3609.9 61041.9 64651.8 3812.6 64094.0 67906.6 5.6 5.0 5.0

Financial Intermediaries &

Auxiliary Services 12415.3 8549.6 20964.9 12896.3 8936.3 21832.6 3.9 4.5 4.1

Social Security and Insurance 2870.4 921.8 3792.2 2976.6 961.4 3938.0 3.7 4.3 3.8

Tourism 162.0 11284.9 11446.9 105.0 7046.4 7151.4 (35.2) (37.6) (37.5)

Real Estate 493.6 43776.5 44270.1 517.8 45846.2 46364.0 4.9 4.7 4.7

Real Estate Ownership 63.7 30885.9 30949.6 67.3 32454.4 32521.7 5.7 5.1 5.1

Business Services 429.9 12890.6 13320.5 450.5 13391.8 13842.3 4.8 3.9 3.9

General Government 45620.7 0.0 45620.7 48199.3 0.0 48199.3 5.7 0.0 5.7

Social Services 655.1 23154.4 23809.5 676.1 23911.4 24587.5 3.2 3.3 3.3

Education 0.0 8426.7 8426.7 0.0 8678.1 8678.1 0.0 3.0 3.0

Health 574.4 10763.0 11337.4 592.2 11086.2 11678.4 3.1 3.0 3.0

Others 80.7 3964.7 4045.4 83.9 4147.1 4231.0 4.0 4.6 4.6

Source: Ministry of Planning, Monitoring, and Administrative Reform.

(1/1) GDP at Factor Cost by Economic Sector

At 2011/2012 prices

- 8

8 -

During July/September

Sectors

Growth Rates + (-) (%)

2015/2016 2016/2017 2015/2016 2016/2017 2015/2016 2016/2017

1- GDP at Market Price (2+5-6) 496.8 513.9 100.0 100.0 5.1 3.4

2- Total Domestic Expenditure (3+4) 539.8 558.9 108.7 108.8 6.7 3.5

3- Final Consumption 479.8 489.9 96.6 95.4 6.5 2.1

Final private consumption 423.8 432.9 85.3 84.3 6.6 2.1

Final government consumption 56.0 57.0 11.3 11.1 5.7 1.8

4- Gross Capital Formation 60.0 69.0 12.1 13.4 8.7 15.0

Investments 58.0 66.0 11.7 12.8 15.1 13.8

Change in stock 2.0 3.0 0.4 0.6 (58.3) 50.0

5- Exports of Goods & Services 50.7 51.0 10.2 9.9 (25.0) 0.6

6- Imports of Goods & Services 93.7 96.0 18.9 18.7 (6.8) 2.5

(1/2) GDP by Expenditure

- 89 -

At 2011/2012 prices


Value at LE bn Structure (%) Growth Rate + (-) (%)

Source: Ministry of Planning, Monitoring, and Administrative Reform.

Groups

2015/2016 2016/2017

All Items 100.0 162.5 168.7 185.2 192.5 3.8 3.9Food & Non-Alcoholic Beverages 39.9 191.4 202.6 225.1 232.6 5.9 3.3

Alcoholic Beverages & Tobacco 2.2 314.6 314.6 320.8 370.8 0.0 15.6

Clothing & Footwear 5.4 123.1 124.5 135.7 142.0 1.1 4.6

Housing, Water, Electricity, Gas & Fuel 18.4 124.2 128.5 130.8 136.8 3.5 4.6

Furnishings, Household Equipment &

Routine Maintenance of the House 3.8 139.1 142.5 157.7 162.1 2.4 2.8

Health Care 6.3 131.2 136.6 172.5 172.5 4.1 0.0

Transportation 5.7 139.2 139.7 144.2 149.0 0.4 3.3

Communications 3.1 96.8 96.8 96.9 98.5 0.0 1.7

Recreation & Culture 2.4 168.1 177.0 190.6 204.8 5.3 7.5

Education 4.6 196.9 196.9 219.0 219.0 0.0 0.0

Restaurants & Hotels 4.4 177.5 181.9 215.4 228.2 2.5 5.9

Miscellaneous Goods & Services 3.7 111.5 112.0 121.1 132.4 0.4 9.3

September 2015 June 2016 September 2016

Source: Central Agency for Public Mobilization and Statistics (CAPMAS), (Monthly bulletin of Consumer Price Index)

* The 9th series of CPI was introduced in August 2010. The weights involved in the formation of the Index were taken from the results of the 2008/2009 survey of

income, expenditure and consumption using January 2010 as a base period.

Rate of change (%) July/September

(1/3) Consumer Price Index (Urban Population) (January 2010=100)*

- 90

-

Relative Weights

2015/2016 2016/2017

June 2015

Sections

2015/2016 2016/2017

All Items 100.0 204.4 206.4 216.0 225.5 1.0 4.4Agriculture & Fishing 25.1 298.1 319.7 339.0 352.6 7.3 4.0

Mining & Quarrying 21.8 125.9 103.6 102.5 101.2 (17.7) (1.3)

Manufacturing 38.9 201.1 202.2 212.2 223.2 0.6 5.2

Electricity, Gas, Steam & Air Conditioning Supply

2.3 251.2 266.9 266.9 321.6 6.3 20.5

Water Supply, Sewerage, Waste Management & Remediation Activities

2.0 205.7 224.8 256.9 256.9 9.3 0.0

Transportation & Storage 2.8 164.8 168.4 169.8 189.2 2.2 11.4

Accommodation & Food Service Activities 5.0 139.6 142.1 149.7 156.4 1.8 4.5

Information & Communication 2.1 112.5 112.5 112.5 112.5 0.0 0.0

Source: Central Agency for Public Mobilization and Statistics (CAPMAS), (the bi-monthly bulletin of the Producer Price Index).

Rate of change + (-) (%) July/September

(1/4) Producer Price Index (PPI) (2004/2005=100)

- 91

-

Relative Weights

2015/2016 2016/2017

June 2015 September 2015 June 2016 September 2016

2013

End of Sept. June Sept. June Sept. June Sept.

Reserve Money 339295 364473 374619 485876 424431 478076 508167

Currency in circulation outside the CBE * 271271 288651 297877 313468 330307 368459 393701

Banks' deposits in local currency at the CBE 68024 75822 76742 172408++ 94124 109617 114466

Counterpart Assets 339295 364473 374619 485876 424431 478076 508167

Net Foreign Assets 42958 37395 39229 25278 -4493 -44863 -57186

Foreign Assets 126065 115770 117613 148098 122793 149943 167856

Gold 17239 18983 17881 18195 18042 22820 24060

Foreign securities 77594 61506 68853 104523 83278 32795 32465

Foreign currencies 31232 35281 30879 25380 21473 94328 111331

Foreign Liabilities 83107 78375 78384 122820 127286 194806 225042

Net Domestic Assets 296337 327078 335390 460598 428924 522939 565353

Net Claims on Government + 340773 419218 397934 523893 596766 619410 668145

Claims; of which: 432458 463724 497673 620003 680570 706885 726698

Government securities 240331 240331 210330 240330 241830 390830 390830

Deposits 91685 44506 99739 96110 83804 87475 58553

Net Claims on Banks -6361 -9045 -7991 -26334 3520 59621 87607

Claims 26135 25265 30633 25017 54549 120432 146723

Deposits in foreign currencies 32496 34310 38624 51351 51029 60811 59116

Other Items (Net) -38075 -83095 -54553 -36961++ -171362 -156092 -190399

Source: Central Bank of Egypt.

* Including subsidiary banknotes issued by the Ministry of Finance.

+ Including public economic authorities and the National Investment Bank.++ Under open- market operations, the deposit acceptance session scheduled on 30 June 2015 was cancelled, and a substitute session was held on Thursday 2/7/2015.

- 92

-

2014 2015 2016

(2/1/1) CBE Financial Position: Reserve Money and Counterpart Assets

(LE mn)

2013

End of Sept. June Sept. June* Sept. June Sept.

1- Domestic Liquidity 1334967 1516601 1543756 1765492 1850305 2094500 2183148

A- Money Supply 365745 410554 428200 499065 521285 572935 607158

Currency in circulation outside the banking system 257206 270856 281186 292699 311317 346853 370130

Demand deposits in local currency 108539 139698 147014 206366 209968 226082 237028

B- Quasi-Money 969222 1106047 1115556 1266427 1329020 1521565 1575990

Time & saving deposits in local currency 754610 869976 877851 1003432 1054520 1197746 1249648

Demand and time & saving deposits in foreign currencies 214612 236071 237705 262995 274500 323819 326342

2- Counterpart Assets

Net foreign assets 124503 119162 117811 51487 10502 -87389 -111831

Domestic credit 1394369 1625141 1641884 1978211 2090743 2460115 2584842

Other items (net) -183905 -227702 -215939 -264206 -250940 -278226 -289863


* As of March 2015, data of Arab International Bank were added to the banking survey, thereby affecting the related tables.

-93

-2014 2015 2016

(2/1/2) Banking Survey: Domestic Liquidity and Counterpart Assets

(LE mn)

2013


Total Deposits in Local Currency 863149 1009674 1024865 1209798 1264488 1423828 1486676

1- Demand Deposits 108539 139698 147014 206366 209968 226082 237028

Public business sector * 5946 8523 9468 16050 17028 20628 19522

Private business sector 57090 76384 79708 123964 121935 129896 138321

Household sector 46819 55560 59689 67133 72375 76924 80289

Minus: Purchased cheques & drafts 1316 769 1851 781 1370 1366 1104

2- Time and Saving Deposits 754610 869976 877851 1003432 1054520 1197746 1249648





*Including all public sector companies subject or not to Law No. 203 for 1991.

- 94

-2014 2015 2016

(2/1/3) Banking Survey: Deposits in Local Currency

(LE mn)

2013


Total Deposits in Foreign Currencies 214612 236071 237705 262995 274500 323819 326342

1- Demand Deposits 53594 62214 65599 68631 71080 75910 74591




Minus: Purchased cheques & drafts 54 64 83 31 44 29 17

2- Time and Saving Deposits 161018 173857 172106 194364 203420 247909 251751





* Including all public sector companies subject or not to Law No. 203 for 1991.

- 95

-2014 2015 2016

(2/1/4) Banking Survey : Deposits in Foreign Currencies

(LE mn)

2013


Net Foreign Assets 124503 119162 117811 51487 10502 -87389 -111831

First: Foreign Assets 240780 231608 233028 234312 204557 231475 251216

Central Bank of Egypt 126065 115770 117613 148098 122793 149943 167856

Banks 114715 115838 115415 86214 81764 81532 83360

Second: Foreign Liabilities 116277 112446 115217 182825 194055 318864 363047

Central Bank of Egypt 83107 78375 78384 122820 127286 194806 225042

Banks 33170 34071 36833 60005 66769 124058 138005


- 96

-

2014 2015 2016

(2/1/5) Banking Survey: Foreign Assets and Liabilities

(LE mn)

2013


1- Domestic Credit 1394369 1625141 1641884 1978211 2090743 2460115 2584842

Net claims on the government (A+B-C) 854645 1045186 1048580 1291427 1384992 1654910 1760809

A-Securities 859685 1004342 1012483 1193595 1218706 1614650 1672369

B-Credit facilities 230324 264196 328853 446094 539098 489795 522186

C-Government deposits 235364 223352 292756 348262 372812 449535 433746

Claims on public business sector * 43354 45417 46028 63218 74926 93073 95074

Claims on private business sector 366948 389275 391940 448276 448761 504258 515582

Claims on household sector 129422 145263 155336 175290 182064 207874 213377

2- Other Items (Net) -183905 -227702 -215939 -264206 -250940 -278226 -289863

Capital accounts -202420 -233369 -224017 -263117 -262258 -305204 -333200

Net unclassified assets and liabilities (Including net Interbank Debt and Credit Position)

18515 5667 8078 -1089 11318 26978 43337



- 97

-2014 2015 2016

(2/1/6) Banking Survey: Domestic Credit / Other Items (Net)

(LE mn)

2013


Total Saving Vessels 1195924 1360870 1366878 1544783 1608919 1849555 1904466

Savings at the Banking System 969222 1106047 1115556 1266427 1329020 1521565 1575990

Time & saving deposits in local currency 754610 869976 877851 1003432 1054520 1197746 1249648

Demand and time & saving deposits in foreign currencies 214612 236071 237705 262995 274500 323819 326342

Net Sales of Investment Certificates 103890 108378 108094 108875 109625 139771 142643

Post Office Saving Deposits 122812 146445 143228 169481 170274 188219 185833


- 98

-

(LE mn)

2014 2015 2016

(2/1/7) Total Saving Vessels

2013

End of Sept. June Sept. June Sept. June Sept.Total 43141 45100 45681 62970 74715 92831 94803

In Local Currency 34491 35107 35795 43742 52801 65168 66928

Agriculture 21 21 28 2 1 - -Manufacturing 16431 19303 18912 23917 26432 29582 28886Trade 1691 2359 2678 2778 3077 4275 4567Services 16348 13424 14177 17045 23291 31311 33475

In Foreign Currencies 8650 9993 9886 19228 21914 27663 27875

Agriculture - - - - - - -Manufacturing 1076 2003 2085 6361 7326 6035 6095Trade 529 904 745 1208 861 883 748Services 7045 7086 7056 11659 13727 20745 21032


- 99

-(LE mn)

2014 2015 2016


(2/1/8) Bank Lending and Discount Balances to Business Sector

(Public Business Sector *)

2013


Total 328055 348971 351566 403434 404727 459582 467462


Agriculture 4583 5118 4933 5833 5847 8384 8603

Manufacturing 97644 102245 100125 110762 108790 126105 128696

Trade 42863 45572 45545 47245 45125 61355 62925

Services 71375 74884 75499 88565 88038 106478 105728


Agriculture 1318 1666 1909 2595 2237 2025 2059

Manufacturing 61326 68238 71998 83812 86837 86203 90025

Trade 8497 11115 12387 15965 16689 14965 16284

Services 40449 40133 39170 48657 51164 54067 53142


- 100 -

(LE mn)

2014 2015 2016

(2/1/8) Bank Lending and Discount Balances to the Business Sector (Contd.)

(Private Business Sector)

End of Number of Banks Operating in Egypt Number of Branches

September 2013 40 3657

June 2014 38 * 3710


June 2015 38 3766


June 2016 38 3882


* The Bank of Nova Scotia and The National Bank of Oman obtained approvals to cease operations in Egypt.

(2/2) Structure of the Egyptian Banking System

-10

1 -


2013


Total Banknote Issued 275584 290283 299751 315313 332115 369757 395657

Currency By Denomination+ 275199 289875 299333 314885 331684 369321 395218

PT 25 144 146 151 159 162 166 167

PT 50 300 316 330 355 360 365 365

LE 1 935 945 956 969 979 1029 1086

LE 5 2260 1833 1949 1828 1958 2431 2482

LE 10 3623 3516 3902 3504 3387 3089 3254

LE 20 7157 6809 7876 6749 6531 6093 5882

LE 50 25799 25279 25474 30767 31786 29115 29162

LE 100 112817 115749 113668 114574 119020 132481 142408

LE 200 122164 135282 145027 155980 167501 194552 210412

Subsidiary Denominations (Paper & Coins)* 385 408 418 428 431 436 439


* Issued by Minsitry of Finance.

+ Including coin denominations of 25, 50 and 100 piasters.

- 102 -

(LE mn)

2014 2015 2016

(2/3/1) Note Issued by Denomination

2013


Total 271271 288651 297877 313468 330307 368459 393701

Subsidiary Coins & Notes* 385 408 418 428 431 436 439

PT 25 143 145 149 158 161 166 167

PT 50 298 314 327 352 357 364 364

LE 1 931 941 950 963 973 1027 1082

LE 5 2200 1763 1917 1803 1925 2392 2455

LE 10 3533 3263 3805 3411 3313 3018 3179

LE 20 7000 6668 7657 6636 6431 6003 5749

LE 50 25530 25154 25301 30579 31663 29004 29018

LE 100 110552 115402 113305 114027 118400 132277 141799

LE 200 120699 134593 144048 155111 166653 193772 209449


* Issued by the Ministry of Finance.

-103 -

(LE mn)

2014 2015 2016

(2/3/2) Currency in Circulation Outside the CBE by Denomination

During

2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017

Local Currency Transactions via RTGS*

1- Automated Clearing House (ACH)

Number of transactions (thousand) 3192 3072 3257 3037 3226 3289 3130

Value of transactions (LE bn) 154 162 171 178 226 265 272

2- Other Transactions via RTGS**

Number of transactions (in unit) 316691 309136 339472 256812 245357 257403 265910

Value of transactions (LE bn) 3802 2339 2553 3554 5319 7302 8263

Foreign Currency Transfers (Dollar Interbank

Transactions) via the Fin-Copy System***

Number of transactions (in unit) 3179 3405 3079 1243 1146 1116 319

Value of transactions (US$ mn) 19624 16601 11310 2421 1371 1252 341


* The RTGS was launched on 15 /3/ 2009.

** Including corridor operations and deposits for monetary policy purposes as of 15/3/2009.

*** This service was introduced on 19/ 9/ 2004.

- 10

4 -

(2/3/3) CBE: Transactions via RTGS and SWIFT

July/September

(LE mn)

2013

End of Sept. June Sept. June* Sept. June Sept.

Assets

Cash 22419 27276 26944 27381 26105 31432 33434

Securities & investments in TBs 680117 825524 863626 1016025 1036014 1283616 1345548

Balances with banks in Egypt, of which: 138650 174786 168241 240336 330957 374644 438487

Loans and discounts 825 363 357 1500 1214 1682 1941

Balances with banks abroad, of which: 74784 78742 78366 54834 52773 51074 52819

Loans and discounts 1880 2284 1758 1520 1304 1391 1126

Loan and discount balances 549468 587852 601242 717999 771629 942727 970153

Other assets 154090 122693 159750 142404 188058 162601 227101

Assets =Liabilities 1619528 1816873 1898169 2198979 2405536 2846094 3067542

Liabilities

Capital 72308 77555 78686 92550 93602 100726 100726

Reserves 37049 47022 44060 50080 47250 63002 88758

Provisions 62500 62777 62917 66049 66892 66880 70575

Bonds & Long-term loans 28839 30168 30390 38453 38218 48532 55863

Obligations to banks in Egypt 16010 17858 21890 20763 30318 60551 66776

Obligations to banks abroad 15158 14699 16641 30147 37613 86060 101278

Total deposits 1226640 1429432 1462326 1734178 1837744 2116117 2195588

Other liabilities, of which: 161024 137362 181259 166759 253899 304226 387978

Cheques payable 4435 6880 6583 8175 7017 10984 8552

Source: Central Bank of Egypt.* As of March 2015, data of Arab International Bank were added to the banks’ aggregate financial position, thereby affecting the related tables.

(2/4/1) Banks: Aggregate Financial Position

- 105 -

2014 2015 2016

(LE mn)

2013


Total Deposits 1226640 1429432 1462326 1734178 1837744 2116117 2195588

Demand deposits 175975 215870 227042 308915 314011 354033 372474

Time & saving deposits and saving accounts 1004371 1157976 1158930 1330179 1415093 1641305 1699060

Blocked or retained deposits 46294 55586 76354 95084 108640 120779 124054

Local Currency Deposits 937086 1093686 1127916 1369674 1471837 1691590 1763429

Demand deposits 120334 150297 159476 236440 239971 275374 294765



Foreign Currency Deposits 289554 335746 334410 364504 365907 424527 432159

Demand deposits 55641 65573 67566 72475 74040 78659 77709




(2/4/2) Banks: Deposits by Maturity

- 10

6 -

2014 2015 2016

(LE mn)

2013


Total Deposits 1226640 1429432 1462326 1734178 1837744 2116117 2195588


Government sector 67779 78425 95306 149115 195894 258021 266217




External sector ** 4994 5038 6109 10187 10308 9559 9717






External sector ** 3762 4099 3935 5026 5064 3803 4127

Source : Central Bank of Egypt.


** Including counterpart deposits of USAID .

(2/4/3) Banks: Deposits by Sector

- 107 -

2014 2015 2016

(LE mn)

2013


Total Deposits 1226640 1429432 1462326 1734178 1837744 2116117 2195588


Agriculture 3421 4444 5193 5272 5924 6851 6477

Manufacturing 43701 59636 65380 107152 114201 127232 141012

Trade 29179 38121 40687 58793 62734 67440 76800

Services 65306 79390 83668 119610 127386 147640 153811

Unclassified sectors 795479 912095 932988 1078847 1161592 1342427 1385329


Agriculture 1177 1246 1332 1640 1745 1976 1366

Manufacturing 31723 34699 34292 33317 38004 44570 42339

Trade 14799 16032 15453 17621 16589 22310 20998

Services 29905 33417 32653 36233 39899 42959 43844



(2/4/4) Banks: Deposits by Economic Activity - 1

08

-

2014 2015 2016

(LE mn)

2013


Total 680117 825524 863626 1016025 1036014 1283616 1345548





Household sector - - - - - - -

External sector 84 82 80 79 87 73 73



Public business sector * - - - - - - -


Household sector - - - - - - -

External sector 20847 19816 19569 14806 12025 11860 12412



(2/4/5) Banks: Portfolio Investments by Sector - 1

09

-

2014 2015 2016

(LE mn)

2013


Total 549468 587852 601242 717999 771629 942727 970153






External sector 606 322 331 366 406 313 457






External sector 10047 7395 6818 9517 9358 8312 7737



(2/4/6) Banks: Lending and Discount Balances by Sector

- 110 -

2014 2015 2016

(LE mn)

2013


Total 1229585 1413376 1464868 1734024 1807643 2226343 2315701






External sector 690 404 411 445 493 386 530






External sector 30894 27211 26387 24323 21383 20172 20149



(2/4/7) Banks: Credit by Sector - 1

11 -

2014 2015 2016

(LE mn)

2013


Total 549468 587852 601242 717999 771629 942727 970153


Agriculture 4605 5148 4970 5843 5856 8408 8627

Manufacturing 120807 128487 125926 141025 141816 162198 163776

Trade 44554 47930 48223 50024 48202 65631 70079

Services 91450 92790 94147 109633 115085 140931 142299



Agriculture 1318 1666 1909 2595 2236 2054 2088

Manufacturing 88381 97549 101794 135748 142473 152279 166052

Trade 9025 12020 13132 17174 17550 15849 17031

Services 48898 48841 48154 70227 75431 87323 86864



(2/4/8) Banks: Lending and Discount Balances by Economic Activity

- 112 -

2014 2015 2016

More than

one-month

and less than

or equal to

three-month

deposits

More than

three-month

and less than

or equal to

six-month

deposits

More than six-

month and less

than or equal

to one year

deposits

Less than or

equal to one

year loans

Simple

Return

Of increasing

certificate

value

January 2014 8.75 7.10 7.60 9.10 11.80 9.75 9.25 8.50

February ,, 7.10 7.50 8.90 11.80 ,, ,, ,,

March ,, 6.80 7.30 8.80 11.70 ,, ,, ,,

April ,, 6.80 7.30 8.60 11.60 ,, ,, ,,

May ,, 6.70 7.30 8.50 11.40 ,, ,, ,,

June ,, 6.70 7.30 8.40 11.30 ,, ,, ,,

July 9.75 6.60 7.40 8.40 11.80 ,, ,, ,,

August ,, 7.00 7.50 8.40 11.90 ,, ,, ,,

September ,, 7.00 7.60 8.40 11.90 ,, ,, ,,

October ،، 7.00 7.60 8.70 11.70 ,, ,, ,,

November ,, 7.00 7.70 9.00 11.80 ,, ,, ,,

December ،، 7.20 7.60 9.00 11.80 ,, ,, ,,

January 2015 9.25 7.20 7.50 8.90 11.70 ,, ,, ,,

February ,, 7.20 7.30 8.90 11.60 ,, ,, ,,

March ,, 7.10 7.50 8.90 11.60 ,, ,, ,,

April ،، 7.00 7.60 8.90 11.50 ,, ,, ,,

May ،، 6.80 7.60 8.80 11.60 10.25 9.75 8.00

June ،، 6.80 7.50 8.80 11.60 ,, ,, ,,

July ،، 6.70 7.60 8.80 11.70 ,, ,, ,,

August ،، 6.80 7.60 8.70 11.70 ,, ,, ,,

September ،، 6.80 7.60 8.60 11.60 ,, ,, ,,

October ،، 6.90 7.70 8.60 11.50 ،، ،، ،،

November ،، 6.80 7.80 8.60 11.60 12.75 10.75 ،،

December 9.75 6.80 7.70 8.50 11.80 ,, ,, ,,

January 2016 ،، 6.90 7.70 8.50 11.90 ,, ,, ,,

February ،، 7.00 7.70 8.50 11.90 ,, ,, ,,

March 11.25 7.10 7.70 8.60 12.50 ,, ,, ,,

April ،، 7.20 7.80 8.70 12.90 ,, ,, ,,

May ،، 7.50 8.10 8.90 12.90 ,, ,, ,,

June 12.25 7.50 8.20 8.90 13.40 ,, ,, ,,

July ،، 7.80 8.30 8.90 13.80 ,, ,, ,,

August ،، 7.90 8.40 9.00 13.80 ,, ,, ,,

September ،، 8.10 8.60 9.20 13.90 ,, ,, ,,

Source: Central Bank of Egypt and the Egyptian National Post Authority.

End of Discount

Rate

Average Interest Rates at Banks Interest Rate on

Investment Certificates

Interest Rate on

Post Office Saving

Deposits

- 113 -

(2/5/1) Discount and Interest Rates on Deposits and Loans in Egyptian Pound

(Annual %)

US Dollar Pound Sterling Euro

Min. Max. Min. Max. Min. Max.

January 2014 0.11 0.23 0.13 0.36 0.08 0.22

February 0.11 0.23 0.13 0.37 0.08 0.21

March 0.11 0.23 0.13 0.37 0.09 0.23

April 0.10 0.22 0.13 0.37 0.10 0.26

May 0.10 0.23 0.13 0.37 0.09 0.23

June 0.11 0.23 0.14 0.39 0.05 0.14

July 0.11 0.23 0.14 0.39 0.05 0.14

August 0.11 0.23 0.14 0.39 0.04 0.11

September 0.11 0.23 0.14 0.40 0.03 0.09

October 0.10 0.23 0.14 0.39 0.03 0.09

November 0.11 0.23 0.14 0.39 0.03 0.09

December 0.11 0.25 0.14 0.39 0.03 0.09

January 2015 0.11 0.25 0.14 0.39 0.03 0.09

February 0.12 0.26 0.14 0.40 0.03 0.09

March 0.12 0.26 0.14 0.40 0.03 0.09

April 0.13 0.27 0.14 0.40 0.03 0.09

May 0.13 0.28 0.14 0.40 0.03 0.09

June 0.13 0.28 0.14 0.40 0.03 0.09

July 0.13 0.29 0.15 0.41 0.03 0.09

August 0.15 0.32 0.15 0.41 0.03 0.09

September 0.15 0.32 0.15 0.41 0.03 0.09

October 0.15 0.32 0.14 0.41 0.03 0.09

November 0.18 0.39 0.14 0.40 0.03 0.09

December 0.27 0.59 0.15 0.41 0.03 0.09

January 2016 0.28 0.61 0.15 0.41 0.03 0.09

February 0.28 0.62 0.15 0.41 0.03 0.09

March 0.28 0.62 0.15 0.41 0.03 0.09

April 0.29 0.62 0.15 0.41 0.03 0.09

May 0.30 0.65 0.15 0.41 0.03 0.09

June 0.28 0.62 0.14 0.39 0.03 0.09

July 0.33 0.73 0.13 0.36 0.03 0.09

August 0.37 0.81 0.10 0.27 0.03 0.09

September 0.38 0.84 0.09 0.26 0.03 0.09

Source: National Bank of Egypt.

- 114 -

(2/5/2) Domestic Interest Rates on 3-Month Depositsin Major Currencies

( Annual % )

End of

(%)

91 days 182 days 266 days 273 days 357 days 364 days

July 2016

First week (5/7) 13.974 14.917 15.115 0.000 15.185 0.000

Second week (12/7) 14.093 15.110 0.000 15.320 0.000 15.370

Third week (19/7) 14.149 15.259 15.570 0.000 15.617 0.000

Fourth week (26/7) 14.272 15.302 0.000 15.752 0.000 15.743

Monthly Average 14.122 15.147 15.343 15.536 15.401 15.557

August 2016

First week (2/8) 14.212 15.514 15.653 0.000 15.947 0.000

Second week (9/8) 14.089 15.281 0.000 15.730 0.000 15.826

Third week (16/8) 14.154 15.402 15.890 0.000 15.914 0.000

Fourth week (23/8) 14.035 15.499 0.000 15.969 0.000 15.965

Fifth week (30/8) 14.030 15.575 16.128 0.000 16.071 0.000

Monthly Average 14.104 15.454 15.890 15.850 15.977 15.896

September 2016

First week (6/9) 14.482 15.738 0.000 16.258 0.000 16.249

Second week (13/9) 14.908 15.605 16.470 0.000 16.105 0.000

Third week (20/9) 14.921 15.763 0.000 16.420 0.000 16.414

Fourth week (27/9) 14.775 15.794 16.393 0.000 16.437 0.000

Monthly Average 14.772 15.725 16.432 16.339 16.271 16.332


(2/5/3) Interest Rates on Treasury Bills (Weekly Weighted Averages)

T.bills according to maturity

- 11

5 -

2013


Number of Companies (Unit) 209 213 213 221 220 222 223

Number of Shares (mn) 40323 43800 44258 53304 54186 61773 61884

Nominal Value of Capital (LE mn) 152641 162671 167477 178068 182070 188833 186836

Market Value of Capital (LE mn) 377733 477641 526214 485175 448732 382541 404845

The Market of Medium and Small Enterprises (Nilex)*

Number of Companies (Unit) 23 24 26 33 31 32 31

Number of Listed Shares (mn) 228 265 305 460 440 672 674

Total Value of Traded Shares (LE mn) 54 51 53 43 40 63 61

Market Value of Capital (LE mn) 1132 1062 1167 1202 1182 1198 1248

The Egyptian Exchange Indices**

EGX 20 Capped 6589.7 9869.7 11496.7 8543.6 6946.8 6977.4 7909.8

EGX 30 5620.5 8162.2 9811.4 8371.5 7332.9 6942.5 7881.1

EGX 70 486.1 591.1 637.3 444.7 388.4 351.0 351.6

EGX 100 811.3 1034.3 1167.9 941.8 844.6 743.7 790.3

Nile 976.1 763.8 868.5 657.2 622.9 631.6 647.1

EGX 50 EWI 1284.1 1853.4 2063.4 1430.1 1215.0 1259.9 1311.5

Source: Monthly Bulletin of the Egyptian Exchange.

* Trading in the Nilex started on 3/6/2010.

** The Egyptian Exchange CASE 30 Index was renamed EGX 30, while the EGX 70 index was introduced as of March 2009 to cover the top 70 companies other than the 30 constituent companies of EGX 30.

EGX 100 was also introduced, encompassing those companies constituting EGX 30 and EGX 70, as of August 2009. EGX 20 Capped was also introduced in October 2011, which includes the most

active 20 companies listed on the Egyptian Exchange. The index was computed as February 2003. In February 2014, the Nile index was introduced. It was computed as of July 2012. The Egyptian

Exchange also launched the EGX 50 EWI in August 2015 to encompass the largest 50 companies based on liquidity and activity, the index was computed starting from July 2013.

- 116 -

20152014 2016

(3/1) The Egyptian Exchange

Number of

Transactions

(Unit)

Amount

(Thousand)

Market Value

(mn)

Number of

Transactions

(Unit)

Amount

(Thousand)

Market Value

(mn)

Shares in (Egyptian Pound) 1105164 10635675 29842 1064455 11277647 33322

Floor Transactions 1099199 10129091 25251 1058843 10941434 32354

Over the Counter Trading 5965 506584 4591 5612 336213 968

Shares in Foreign Currencies

in US Dollar 10881 87828 85 7165 46404 41


Over the Counter Trading 131 2323 42 77 804 19

in Euro - - - 1 0.02 0.02

Floor Transactions - - - - - -

Over the Counter Trading - - - 1 0.02 0.02

Source: Egyptian Financial Supervisory Authority (EFSA) - Monthly Report of the Capital Market.

(3/2) Trading in Shares on the Egyptian Exchange


2015/2016

- 117

-

2016/2017

Number of

Transactions Amount Market Value

Number of

Transactions Amount Market Value

(Thousand) (Thousand)

Bonds in (Egyptian Pound) 524 32261219 33240802 229 9000335 9245486


Over the Counter Trading - - - - - -

Bonds in (US Dollar) - - - - - -

Floor Transactions - - - - - -

Over the Counter Trading - - - - - -

Source: Egyptian Financial Supervisory Authority (EFSA) - Monthly Report of the Capital Market.

(3/3) Trading in Bonds on the Egyptian Exchange - 1

18

-


2015/2016

(Unit)

2016/2017

(Unit)

2015/2016 2016/2017

Net Number of Transactions (Unit) 4764 -17096

Purchases 141977 136308

Sales 137213 153404

Net Volume of Securities (mn) -146 -105

Purchases 1342 1716

Sales 1488 1821

Net Value of Securities (LE mn) 109 -555

Purchases 7295 9893

Sales 7186 10448

Source: The data of the table were updated according to the recent data released from the Egyptian Financial Supervisory Authority (EFSA).

(3/4) Foreigners’ Transactions on the Egyptian Exchange- 11

9 -


Jun-16 Sept.-16 Jun-16 Sept.-16

Commercial International Bank / Egypt (CIB) July-96 Bank of New York CIB / HSBC 1.00 9999 3.56 3.95 39.83 48.10

Suez Cement July-96 Bank of New York CIB / HSBC 1.00 7310 5.00 5.00 12.32 9.75

Paints & Chemicals Industries (Pachin) Oct.-97 Bank of New York CIB / HSBC 3.00 6297 - - 23.76 19.45

EFG-Hermes Aug.-98 Bank of New York HSBC / CIB 0.50 4324 1.90 1.88 10.67 12.47

Ezz Steel Company June-99 Bank of New York CIB / HSBC 0.33 573 - 2.25 7.19 7.11

Global Telecom Holding * July-00 Bank of New York CIB / HSBC 0.20 11713 1.85 1.94 3.19 4.19

Egypt Lebanon Ceramics (Lecico) Nov.-04 Bank of New York CIB / HSBC 1.00 8796 - - 3.08 2.00

Telecom Egypt Dec.-05 Bank of New York CIB / HSBC 0.20 8522 3.20 3.65 8.21 8.90

Naeem Holding Feb.-08 Bank of New York CIB / HSBC 0.25 5625 - - 0.48 0.44

Palm Hills Development May-08 Bank of New York CIB / HSBC 0.20 5435 1.00 3.59 2.22 2.36

G B Auto May-09 Bank of New York CIB 0.20 100 - - 2.23 2.18

Remco for Touristic Villages Construction May-10 JPMorgan HSBC 0.20 1000 - - 1.32 1.44

Orascom Telecom Media and Technology Holding Jan.-12 Bank of New York CIB / HSBC 0.20 807593 0.39 0.40 0.54 0.54

Edita Food Industries Mar.-15 Bank of New York Mellon CIB 0.20 13025 7.20 6.00 15.00 9.57

Arabian Food Industries (DOMTY) Sept.-16 Bank of New York Mellon CIB 0.20 10000 - 2.39 7.36 6.09

Source: Monthly Bulletin of the Egyptian Exchange.

Price ($) at end of Price (LE) at end of

* The conversion ratio has changed to be 5 shares : 1 GDR, as of 12 April 2007. The company name has been changed from Orascom Telecom Holding to Global Telecom Holding, effective as of 23 September 2013.

(3/5) Global Depository Receipts (GDRs)

- 12

0 -

GDRs Listed on Global Exchanges

Corporate Stocks Issued

on the Egyptian

Exchange

CompanyOrder & Date

of OfferingDepository Bank Custodian Bank

Conversion

Ratio

Volume on

Offering Date

(000s)

(LE mn)

End of 91 days 182 days 252 days 259 days 266 days 273 days 280 days 343 days 350 days 357 days 364 days 371 days Total

2009

March9500 51500 0 0 0 55500 0 0 6000 0 97940 0 220440

June6021 43119 0 6000 0 77500 0 0 15000 3000 88440 0 239080

Sept.11000 28990 0 6000 0 88500 0 0 18000 15000 82890 0 250380

Dec.8480 32767 0 6000 10025 79442 0 0 18000 32419 64618 0 251751

2010

March 20000 47264 6000 0 16025 69442 0 0 19000 39419 68118 0 285268

June 13000 46867 6000 3000 27025 45442 0 0 15000 45169 64618 0 266121

Sept. 19000 45000 15000 3000 26000 39000 0 0 21000 42169 58618 0 268787

Dec. 9975 54250 12000 3000 27500 42500 3500 0 31500 38250 59390 0 281865

2011

March 22500 71250 15000 7000 28500 39000 3500 0 31500 41750 56890 3500 320390

June 33000 78000 7325 16500 30250 41866 3500 2785 36840 43552 58985 3500 356103

Sept. 22000 78000 4325 23250 35250 36366 0 2785 40665 43202 60585 3500 349928

Dec. 26500 73850 1325 18250 40250 44312 0 2785 33435 47709 64085 3500 356001

2012

March 2707 86470 0 8750 48382 51899 0 2785 26435 56022 73608 0 357058

June 10000 84095 0 2000 48882 64899 0 0 16095 62969 84458 0 373398

Sept. 15500 72475 0 0 48882 73250 0 0 3270 70820 93358 0 377555

Dec. 12900 77900 0 0 50073 65298 0 0 0 79313 98258 0 383742

2013

March 14000 81000 0 0 56073 69797 0 0 0 83000 102236 0 406106

June 30189 91639 0 0 56939 55290 0 0 0 91000 100790 0 425847

Sept. 26000 97147 0 0 61366 65962 0 0 0 89500 106290 0 446265

Dec. 26500 90578 0 0 62866 62798 0 0 0 98300 112890 0 453932

2014

March26500 91578 0 0 69500 67508 0 0 0 99800 112390 0 467276

June27406 96016 0 0 63874 63053 0 0 0 103782 117390 0 471521

Sept. 30438 82837 0 0 65302 75706 0 0 0 106259 118004 0 478546

Dec. 32500 83337 0 0 60802 83988 0 0 0 107959 125004 0 493590

2015

March 32500 80500 0 0 70428 85951 0 0 0 110559 128504 0 508442

June 33500 80500 0 0 78500 91463 0 0 0 116576 131004 0 531543

Sept. 35500 84000 0 0 88000 91462 0 0 0 119600 135890 0 554452

Dec. 37000 89000 0 0 91500 101000 0 0 0 116100 139890 0 574490

2016

March 41500 100250 0 0 105250 93000 0 0 0 120750 144490 0 605240

June 58500 113250 0 0 112250 99500 0 0 0 114750 158490 0 656740

Sept. 66250 119145 0 0 116433 94563 0 0 0 127046 163679 0 687116

- 121 -

(3/6) Outstanding Balance of Treasury Bills (Quarterly)


Source : Central Bank of Egypt.

(LE mn)

91 days 182 days 266 days 273 days 357 days 364 days Total

July 2016

First week (5/7) 58750 114000 112750 95000 120250 158490 659240

Second week (12/7) 59000 114750 112750 100250 116250 159490 662490

Third week (19/7) 59250 115500 113250 95750 121750 159490 664990

Fourth week (26/7) 59500 116250 113250 103000 117250 159490 668740

August 2016

First week (2/8) 59750 115893 113750 98500 121837 159490 669220

Second week (9/8) 60000 116643 113750 104000 117337 160990 672720

Third week (16/8) 60250 117393 114750 99500 123337 160990 676220

Fourth week (23/8) 60500 118143 114750 105000 118837 162490 679720

Fifth week (30/8) 60750 118643 115750 100500 124837 162490 682970

September 2016

First week (6/9) 62000 119893 115750 103506 120337 163990 685476

Second week (13/9) 63500 121143 113432 99007 126337 163990 687409

Third week (20/9) 64750 120028 113432 101063 122837 163679 685789

Fourth week (27/9) 66250 119145 116433 94563 127046 163679 687116


* Outstanding balance in the last week represents the balance at the end of the month.

(3/7) Outstanding Balance of Treasury Bills (Weekly)*

- 12

2 -


( LE mn)

2016/2017 **

The

Budget

Sector

General

Government

The

Budget

Sector

Total Revenues 100130 114157 96804

Tax Revenues 64477 64477 64113

Taxes on Income and Profits from; 23611 23611 19998

EGPC 0 0 0

SCA 4000 4000 2300

CBE 7245 7245 3860

Other Units 4722 4722 5252

Payable by individuals 7644 7644 8586

Taxes on Property 5869 5869 7927

Taxes on Goods and Services 29856 29856 31940

Taxes on International Trade (Customs) 5141 5141 4248

Other Taxes 0 0 0

Grants 2572 2572 101

Current 2562 2562 ..

Capital 10 10 ..

Other Revenues 33081 47108 32590

Property Income from: 25780 27344 25280

EGPC 0 0 0

SCA 4502 4502 4751

CBE 19460 19460 14927

Economic Authorities 974 974 1757

Companies 157 607 93

Other ( from EGPC & TML*** ) 0 0 ..

Other 687 1801 ..

Sales of Goods and Services 4285 4285 4352

Financing Investment 1363 1363 ..

Other 1653 14116 ..

Source: Ministry of Finance.

*** TML : Third Mobile License.

- 123-

** Data concerning the General Government are not available.

.. Not Available.

(4/1) Consolidated Fiscal Operations of the General Government *

(Total Revenues )

During FYJuly/September

2015/2016

* Includes the Budget Sector, NIB and SIFs.

( LE mn)

2016/2017 **

The

Budget

Sector

General

Government

The

Budget

Sector

Total Expenditures 169884 189672 172174

Compensations of Employees 55281 55845 55309

Salaries and wages 44717 45243 44533

Social contributions 5119 5153 5474

Other 5445 5449 5302

Purchases of Goods and Services 5149 5230 5663

Goods 1762 1767 2268

Services 2706 2749 3013

Other 681 714 382

Interest 50704 47291 57189

Domestic 49500 46087 55944

To NIB & SIFs 5419 0 ..

To Others 44081 46087 ..

Foreign 1204 1204 1245

Subsidies, Grants and Social Benefits 37942 60459 32094

Subsidies 20984 20984 15085

To Petroleum 0 0 0

To GASC 10036 10036 5100

To Others 10948 10948 9985

Grants 2089 2089 767

Social Benefits 14640 37158 15981

Contribution to SIFs 12546 0 13121

Other 2094 37158 2860

Other 229 228 261

Other Expenditures 13181 13187 12992

Defense 11435 11435 ..

Other 1746 1752 ..

Purchases of Non-Financial Assets (Investments) 7627 7660 8927

Fixed assets 6871 6904 8198

Others 756 756 729


- 124-


.. Not Available.

(4/2) Consolidated Fiscal Operations of the General Government *

(Total Expenditures )


2015/2016


( LE mn)

2016/2017 **

The

Budget

Sector

General

Government

The

Budget

Sector***

Total Revenues 100130 114157 96804

Total Expenditures 169884 189672 172174

Cash Deficit 69754 75515 75370

Net Acquisition of Financial Assets 8526 125 1446

Overall Fiscal Balance 78280 75640 76816

Financing Sources 78280 75640 76816

Domestic Financing 138160 116740 ..

Banking Financing 104173 99048 ..

Central Bank 72813 72813 ..

Other Banks 31360 26235 ..

Non- Banking Financing 33987 17692 ..

NIB -1149 0 ..

SIFs 18628 0 ..

Other 25499 25499 ..

NIB Borrowing 0 1184 ..

Special Accounts for Economic Authorities -8991 -8991 ..

Foreign Borrowing -4269 -4269 ..

Others, of which : -9453 9327 ..

Special Accounts for Budget Entities 0 0 ..

Financing Effects for Eliminations 0 0 ..

Exchange Rate Revaluation 224 224 ..

Net Privatization Proceeds 0 0 ..

Difference between Treasury Bills Face Value & Present Value -1237 -1237 ..

Discrepancy -45145 -45145 ..

Cash Deficit (Surplus) as a percentage of GDP (%) 2.5 2.7 2.3

Overall Fiscal Balance as a percentage of GDP(%) 2.8 2.7 2.4

Revenues as a percentage of GDP (%) 3.6 4.1 3.0

Expenditures as a percentage of GDP (%) 6.1 6.8 5.3


-125-

.. Not Available.

(4/3) Summary of the Consolidated Fiscal Operations of the General Government *


2015/2016



*** Detailed Data are not available.

( LE mn )

June Sept. June Sept.

2015 2015 2016 2016 2015/2016 2016/2017

Gross Domestic Debt (1+2+3-4) 2116345 2259245 2620662 2758015 142900 137353

1- Net Domestic Debt of Government (A+B+C+D+E) 1871332 1981475 2285644 2403661 110143 118017

A- Balances of Bonds & Bills 1722165 1797720 2290527 2374881 75555 84354

Treasury Bonds : 1125969 1176830 1474532 1528561 50861 54029

Treasury bonds with the CBE 240330 241830 390830 392330 1500 1500

US dollar bonds issued for commercial banks 22560 23160 26310 26310 600 0

Bonds offered abroad *:

US$ 6108 7407 8832 7363 1299 (1469)

Egyptian treasury bonds** 596940 630440 745005 783665 33500 38660

Government notes to compensate for the actuarial deficit in social insurance funds 2000 2000 2000 2000 0 0

Housing bonds 92 92 62 62 0 0

The equivalent of the retained 5% of corporate profits to purchase government bonds 2124 2124 2199 2203 0 4

Bonds of the Insurance Funds (against the transfer of NIB debt to the Treasury) 254532 268655 298653 314147 14123 15494

Bonds of Barwa Real Estate Investment Company 1283 1122 641 481 (161) (160)

Treasury Bills : 596196 620890 815995 846320 24694 30325

LE 531543 554452 656740 687116 22909 30376

US$ 53307 54725 145576 145576 1418 0

Euro 11346 11713 13679 13628 367 (51)

B- Borrowing from other entities 5640 0 0 0 (5640) 0

C- Credit Facilities from the Social Insurance Funds 450 450 250 250 0 0

D - The Masri Dollar certificate *** 2207 1748 1125 879 (459) (246)

E- Net Government Balances with the Banking System 140870 181557 -6258 27651 40687 33909

2- Borrowing of Economic Authorities (Net) 11341 42190 103720 118909 30849 15189

Net Balances of Economic Authorities with the Banking System -41524 -11830 52171 65676 29694 13505

Borrowing of Economic Authorities from NIB **** 52865 54020 51549 53233 1155 1684

3- NIB Debt (Net) 293902 295838 309591 317431 1936 7840

NIB Debt 295339 299210 315201 322283 3871 7082

Deposits of the NIB with the banking system (-) 1437 3372 5610 4852 1935 (758)

4- Intra-Debt 60230 60258 78293 81986 28 3693

Government debt to the NIB (investments in government securities) 7365 6238 26744 28753 (1127) 2009

Loans of economic authorities to NIB 52865 54020 51549 53233 1155 1684

Source: Central Bank of Egypt - Ministry of Finance - National Investment Bank.

* Represents holdings of financial institutions ( the banking and insurance sectors ) resident in Egypt.

** Based on its nominal value.

*** In order to support the national economy and finance the development plan, the National Bank of Egypt issued a US dollar certificate in May 2012 for Egyptians resident abroad to invest their savings in the

Egyptian market. The Masri Dollar Certificate is a three-year certificate, with a 4% annual return, and is not redeemable in the first six months. Its minimum purchase value is US$ 1000, with no ceiling.

**** Apart from the interest payments due to the NIB.

(4/4)Gross Domestic Debt

-12

6-

End of

Change +(-) during July/Sept.

(LE mn)

June Sept. June Sept.

End of 2015 2015 2016 2016 2015/2016 2016/2017

Liabilities : of which 295339 299210 315201 322283 3871 7082

.Social Insurance Fund for Gov. Employees 41524 42249 32264 33053 725 789

.Social Insurance Fund for Pub. & Priv. Business Sectors Employees 32757 32800 23637 23601 43 (36)

.Proceeds from investment certificates 108938 109637 138265 141983 699 3718

. Accumulated interest on investment certificates (Category A) 7874 7952 7994 8111 78 117

. Proceeds from US dollar development bonds 5 5 4 3 0 (1)

.Post office savings 102297 104496 111044 113414 2199 2370

. Others* 1944 2071 1993 2118 127 125

Assets : of which 295339 299210 315201 322283 3871 7082

. Loans to economic authorities 52865 54020 51549 53233 1155 1684

. Investments in government securities (bills and bonds) 7365 6238 26744 28753 (1127) 2009

.Deposits of the NIB with the banking system 1437 3372 5610 4852 1935 (758)

.Lending to holding companies and affiliate units, concessional loans and others

(NIB debt minus its intra-debt)

Source: Central Bank of Egypt - National Investment Bank.

* Including deposits of the private insurance funds, saving certificates and loans & deposits of various authorities.

(4/5) National Investment Bank ( Resources and Uses)

- 12

7 -

Change + (-) during July/Sept.

233672 235580 231298 235445 1908 4147

(US$mn)

2015/2016*(1) 2016/2017*

Trade Balance -10011.5 -8670.7

Exports 4731.1 5261.4

Petroleum 1662.3 1525.9

Other Exports 3068.8 3735.5

Imports -14742.6 -13932.1

Petroleum -2809.6 -2582.4

Other Imports -11933.0 -11349.7

Services Balance (net) 2834.4 1410.7

Receipts 5041.7 3764.3

Transportation 2640.9 2340.6

Of which: Suez Canal 1366.4 1300.4

Travel 1725.5 758.2

Government Receipts 123.2 62.5

Other 552.1 603.0

Payments 2207.3 2353.6

Transportation 381.5 306.2

Travel 791.5 1105.2

Government Expenditures 183.5 157.0

Other 850.8 785.2

Investment Income Balance -1148.4 -1118.0

Income receipts 101.2 81.6

Income payments 1249.6 1199.6

Of which: Interest Paid 185.5 247.4

Transfers 4315.7 3394.7

Private Transfers (net) 4293.8 3360.9

Of which: Remittances of Egyptians working abroad 4373.5 3396.8

Official Transfers (net) 21.9 33.8

Current Account Balance -4009.8 -4983.3

- 128 -

(5/1) Balance of Payments

July/Sept.

(US$mn)

2015/2016*(1) 2016/2017*

Capital & Financial Account 1631.6 7090.8

Capital Account -36.1 -9.4

Financial Account 1667.7 7100.2

Direct Investment Abroad -40.3 -62.0

Foreign Direct Investment in Egypt (Net) 1357.0 1872.2

Portfolio Investments Abroad (Net) 35.4 27.7

Portfolio Investments in Egypt (Net) -1405.8 -840.9

Of which: Bonds -1391.9 -832.5

Other Investments (Net) 1721.4 6103.2

Net Borrowing 806.1 1310.3

Medium -and Long -Term Loans -641.7 283.7

Disbursements 236.5 1241.4

Repayments -878.2 -957.7

Medium -Term Suppliers' snd Buyers' Credit 68.7 571.8

Disbursements 74.6 590.3

Repayments -5.9 -18.5

Short -Term Suppliers' and Buyers' Credit (Net) 1379.1 454.8

Other Assets 245.2 -245.3

CBE 3.5 -12.3

Banks 827.4 -216.6

Other -585.7 -16.4

Other Liabilities 670.1 5038.2

CBE 1.2 3449.7

Banks 668.9 1588.5

Net Errors & Omissions -1278.5 -216.3

Overall Balance -3656.7 1891.2

Change in CBE'S Reserve Assets, Increase (-) 3656.7 -1891.2

Source: CBE.

(1) The data was adjusted according to the latest update.

* Preliminary figures.

- 129 -

(5/1) Balance of Payments (Contd.)

July/Sept.

(US$ mn)

value % value %

Total*** 4731.1 100.0 5261.4 100.0 530.3

Fuel, Mineral Oils and Products, of which: 1679.0 35.5 1583.5 30.1 (95.5)

Crude oil 1125.2 23.8 908.0 17.3 (217.2)

Oil products**** 537.1 11.4 617.9 11.7 80.8

Coal of various types 9.2 0.2 11.4 0.2 2.2

Raw Materials, of which: 405.1 8.6 368.0 7.0 (37.1)

Fresh, chilled, or cooked vegetables 170.8 3.6 122.8 2.3 (48.0)

Fresh or dried fruits 63.0 1.3 81.1 1.5 18.1

Potatoes for sowing 43.0 0.9 28.4 0.5 (14.6)

Raw cotton 4.0 0.1 11.3 0.2 7.3

Plants and parts thereof 26.1 0.6 11.0 0.2 (15.1)

Mineral materials 12.2 0.3 7.9 0.2 (4.3)

Semi-finished Goods, of which: 563.1 11.9 952.7 18.1 389.6

Gold 159.9 3.4 575.5 10.9 415.6

Ethylene-propylene polymer 126.7 2.7 104.5 2.0 (22.2)

Organic and inorganic compounds 77.1 1.6 81.6 1.6 4.5

Animal or vegetable fats, greases, and oils 29.4 0.6 31.0 0.6 1.6

Carbon 27.5 0.6 22.8 0.4 (4.7)

Pipes, tubes, and hoses 15.3 0.3 15.4 0.3 0.1

Raw cast iron 11.5 0.2 7.6 0.1 (3.9)

Molasses (treacle) 12.8 0.3 6.7 0.1 (6.1)

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0 -

Change+(-)

(5/2) Exports by Degree of Processing *

July/September

2015/2016** 2016/2017**

(US$ mn)

value % value %

Finished Goods, of which: 2083.6 44.0 2354.7 44.8 271.1

Textiles 207.7 4.4 204.0 3.9 (3.7)

Household electrical appliances 189.9 4.0 170.4 3.2 (19.5)

Ready-made clothes 187.9 4.0 163.3 3.1 (24.6)

Milk, Dairy products and cheese 69.9 1.5 116.6 2.2 46.7

Phosphate or mineral fertilizers 59.6 1.3 138.4 2.6 78.8

Medicines, serums, vaccines, and pharmaceuticals 45.9 1.0 87.2 1.7 41.3

Wires and cables 127.0 2.7 111.0 2.1 (16.0)

Cane or beet sugar and pure sucrose 49.1 1.0 80.6 1.5 31.5

Aluminum and articles thereof 45.8 1.0 74.1 1.4 28.3Communication and telephone equipment 45.4 1.0 75.5 1.4 30.1

Passenger vehicles 34.7 0.7 60.9 1.2 26.2

Carpets and other floor coverings 40.3 0.9 43.3 0.8 3.0

Soap and organic detergents 34.3 0.7 40.8 0.8 6.5

Cosmetics, or skin-care products 31.9 0.7 34.9 0.7 3.0

Transmission and reception apparatus for radio and television 69.4 1.5 31.3 0.6 (38.1)

Paper and cardboard paper 59.7 1.3 30.0 0.6 (29.7)

Automatic data processing machines 5.4 0.1 28.6 0.5 23.2

Parts & accessories of motor vehicles 27.1 0.6 28.4 0.5 1.3

Retreaded pneumatic tyres 18.1 0.4 26.8 0.5 8.7

(5/2) Exports by Degree of Processing * (Contd.)

July/September

Change+(-) 2015/2016** 2016/2017**

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1 -

(US$ mn)

value % value %

Oranges 28.6 0.6 25.3 0.5 (3.3)

Paints, varnishes and liquid lustres 20.5 0.4 23.1 0.4 2.6

Ceramic sinks 34.4 0.7 22.1 0.4 (12.3)

Glass & glassware 28.3 0.6 40.8 0.8 12.5

Tiles & ceramic cubes 17.2 0.4 19.2 0.4 2.0

Rods for reinforcing concrete cylinders 23.6 0.5 12.8 0.2 (10.8)

Flat-rolled products (rolled) 2.6 0.1 15.0 0.3 12.4

Cooling Machinery & air conditioners 11.1 0.2 11.6 0.2 0.5

Infant food mixtures 25.3 0.5 10.6 0.2 (14.7)

Semi-raw copper (matte) 41.5 0.9 10.0 0.2 (31.5)

Undistributed Miscellaneous Products 0.3 0.0 2.5 0.0 2.2


* Exports are classified according to the Harmonized Tariff System.

** Preliminary figures.

*** Including exports of free zones.

**** Include natural gas, and bunker & jet fuel.

(5/2) Exports by Degree of Processing * (Contd.)

July/September

Change+(-) 2015/2016** 2016/2017**

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2-

(US$ mn)

Value % Value %

Total*** 14742.6 100.0 13932.1 100.0 (810.5)

Fuel, Mineral Oils and Products, of which: 2854.6 19.4 2641.2 19.0 (213.4)

Oil products**** 2400.0 16.3 2391.9 17.2 (8.1)

Crude oil 409.6 2.8 190.5 1.4 (219.1)

Coal of various types 27.1 0.2 39.0 0.3 11.9

Raw Materials, of which: 1599.8 10.8 1330.9 9.5 (268.9)

Wheat 412.9 2.8 273.0 2.0 (139.9)

Iron ore 158.1 1.1 161.5 1.2 3.4

Non-seed maize 337.3 2.3 127.8 0.9 (209.5)

Bamboo charcoal 258.0 1.8 95.5 0.7 (162.5)

Plants and parts thereof 197.1 1.3 92.2 0.7 (104.9)

Raw cane sugar 91.1 0.6 65.4 0.5 (25.7)

Mineral materials 24.1 0.2 9.2 0.1 (14.9)

Intermediate Goods, of which 3406.1 23.1 3464.3 24.9 58.2

Spare parts and accessories for cars and tractors 368.7 2.5 376.5 2.7 7.8

Polypropylene 299.3 2.0 311.1 2.2 11.8

Organic and inorganic compounds 401.7 2.7 269.7 1.9 (132.0)

Spare parts for machines and appliances 386.2 2.6 208.8 1.5 (177.4)

Animal and vegetable fats, greases and oils 166.8 1.1 206.9 1.5 40.1

Paper and paperboard 241.6 1.6 164.6 1.2 (77.0)

Cast iron 194.0 1.3 146.9 1.1 (47.1)

Retreaded pneumatic tyres 108.1 0.7 91.3 0.7 (16.8)

(5/3) Imports by Degree of Use * - 1

33

-

July/September

Change+(-) 2015/2016** 2016/2017**

(US$ mn)

Value % Value %

Tamping rods for concrete cylinders and rods for

reinforcing rolled concrete152.2 1.0 88.4 0.6 (63.8)

Semi-raw and unrefined copper 114.4 0.8 75.8 0.5 (38.6)

Cables and wires 77.3 0.5 90.2 0.6 12.9

Liquid gloss paints and varnishes 40.8 0.3 57.8 0.4 17.0

Hot and cold rolled flat products 37.3 0.3 58.6 0.4 21.3

Iron and steel pipes and tubes 54.2 0.4 50.6 0.4 (3.6)

Waste and scrap of cast iron 40.8 0.3 35.6 0.3 (5.2)

Cotton yarn 21.0 0.1 41.1 0.3 20.1

Non-alloyed iron and steel 7.7 0.1 34.2 0.2 26.5

Dismantled Air-conditioning machines and spare

parts47.9 0.3 47.2 0.3 (0.7)

Nitrogen, phosphate and potash fertilizers 47.3 0.3 32.4 0.2 (14.9)

Pulp fibers from waste paper 17.6 0.1 21.1 0.2 3.5

Aluminum plates, sheets and strip 7.9 0.1 20.2 0.1 12.3

Investment Goods, of which: 3040.7 20.6 2184.5 15.7 (856.2)

Communication and telephone equipment 328.7 2.2 212.0 1.5 (116.7)

Liquid and air pumps 181.6 1.2 205.8 1.5 24.2

Data treatment computers 104.1 0.7 143.9 1.0 39.8

Cranes and bulldozers 187.8 1.3 83.8 0.6 (104.0)

Electricity generator groups 6.9 0.0 55.8 0.4 48.9

Cinematic cameras 191.5 1.3 54.9 0.4 (136.6)

Machinery for making hot drinks 39.4 0.3 40.2 0.3 0.8

(5/3) Imports by Degree of Use* (Contd.)

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4 -

July/September

Change+(-) 2015/2016** 2016/2017**

(US$ mn)

Value % Value %

Electrical apparatus for electric circuits 71.6 0.5 30.2 0.2 (41.4)

Rail locomotives powered from an external source of electricity 31.9 0.2 27.6 0.2 (4.3)

Power transformers with electrical insulators 7.4 0.1 24.7 0.2 17.3

Agriculture and orchard machinery and equipment 28.2 0.2 23.8 0.2 (4.4)

Printing Machinery 19.4 0.1 15.6 0.1 (3.8)

High sea Vessels 20.3 0.1 12.4 0.1 (7.9)

Machines for extruding, drawing, texturing, or cutting textile materials 21.6 0.1 12.1 0.1 (9.5)

Transmission apparatus for radio-broadcasting and television 60.9 0.4 8.6 0.1 (52.3)

Consumer Goods 3597.4 24.4 3547.6 25.4 (49.8)

A. Durable Goods, of which: 1079.5 7.3 976.5 7.0 (103.0)

Passenger vehicles 434.5 2.9 335.5 2.4 (99.0)

Household electrical appliances 163.7 1.1 233.0 1.7 69.3

Televisions 150.3 1.0 147.0 1.1 (3.3)

B. Non-durable Goods, of which: 2517.9 17.1 2571.1 18.4 53.2

Medicines 328.2 2.2 353.4 2.5 25.2

Meat and offals 259.9 1.8 339.9 2.4 80.0

Pharmaceutical preparations, gauze pads, and vaccines 316.9 2.1 315.6 2.3 (1.3)

Textiles 259.8 1.8 227.0 1.6 (32.8)

Ready-made clothes 194.1 1.3 105.5 0.8 (88.6)


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5 -

July/September

Change+(-) 2015/2016** 2016/2017**

(US$ mn)

Value % Value %

Dairy products 74.4 0.5 96.2 0.7 21.8

Yarn 92.0 0.6 83.8 0.6 (8.2)

Tea 53.2 0.4 53.6 0.4 0.4

Organic Soap and detergents 69.3 0.5 53.2 0.4 (16.1)

Meat preparations 86.3 0.6 50.2 0.4 (36.1)

Shower baths and basins 110.1 0.7 35.8 0.3 (74.3)

Live, fresh, chilled or dried fish 78.0 0.5 77.7 0.6 (0.3)

Other live, fresh, chilled or dried crustaceans 2.5 0.0 28.1 0.2 25.6

Items for packing and transport 1.0 0.0 26.2 0.2 25.2

Cocoa powder 26.5 0.2 23.8 0.2 (2.7)

Toscano cigar 72.9 0.5 20.5 0.1 (52.4)

Insecticides 6.7 0.0 16.6 0.1 9.9

Whipped cream products 82.7 0.6 15.1 0.1 (67.6)

Shelled lentils for non-sowing 11.2 0.1 11.8 0.1 0.6

Buttons and parts thereof 47.8 0.3 10.9 0.1 (36.9)

Undistributed Miscellaneous Goods 244.0 1.7 763.6 5.5 519.6


* Commodities are classified according to the Harmonized System.

** Provisional.

*** Including imports of free zones, and in-kind grants & loans.

**** Including gas, and bunker & jet fuel.


July/September

Change+(-) 2015/2016** 2016/2017**

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6 -

(US$ mn)

2015/2016** 2016/2017** 2015/2016** 2016/2017** 2015/2016** 2016/2017**

Total *** 4731.1 5261.4 14742.6 13932.1 (10011.5) (8670.7)

European Union 1615.7 1554.0 4329.0 3982.6 (2713.3) (2428.6)

Other European countries 251.3 406.9 869.8 915.9 (618.5) (509.0)

Russian Federation & C.I.S 63.1 31.7 1630.8 769.7 (1567.7) (738.0)

United States of America 423.5 477.8 562.0 863.6 (138.5) (385.8)

Arab countries 1307.7 1654.0 2918.3 2678.3 (1610.6) (1024.3)

Asian countries (Non Arab) 556.5 419.6 2988.7 2864.6 (2432.2) (2445.0)

African countries (Non Arab) 125.0 139.3 139.5 166.3 (14.5) (27.0)

Other countries & regions 388.3 578.1 1304.5 1691.1 (916.2) (1113.0)

Source: Central Bank of Egypt

* Including in-kind grants and loans.

** Provisional.

*** Including exports & imports of free zones.

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7 -

(5/4) Regional Distribution of Exports and Imports

July/September

Proceeds of Exports Payments for Imports* Trade Balance

End of

Minimum

Maximum

Weighted average

Second: Market Rates Buy Sell Buy Sell

US Dollar 8.8571 8.8800 8.8574 8.8800

Euro 9.8172 9.8479 9.9372 9.9642

Pound Sterling 11.8960 11.9312 11.5324 11.5644

Swiss Franc 9.0434 9.0696 9.1323 9.1641

100 Japanese Yen 8.6226 8.6491 8.7283 8.7514

Saudi Riyal 2.3616 2.3680 2.3592 2.3655

Kuwaiti Dinar 29.3350 29.4342 29.3779 29.4772

UAE Dirham 2.4114 2.4183 2.4112 2.4179

Chinese Yuan 1.3331 1.3367 1.3281 1.3325

Source : CBE daily exchange rates

The interbank Rates started at 23/12/2004

(In pound per foreign currency unit)

(5/5) Average Foreign Exchange Rates

-138 -

8.7800

8.7800

June 2016 September 2016

8.7800 8.7800

8.7800

8.7800

First: Interbank Rates US$

%Value +(-)%Value%Value

7.94388.2100.060152.6100.055764.4Total External Debt **

7.13440.186.852186.887.448746.71- Medium & Long term debt :

(11.7)(613.3)7.74636.39.45249.6 Rescheduled bilateral debt +

(3.3)(147.6)7.34376.98.14524.5 ODA

(64.2)(465.7)0.4259.41.3725.1 Non-ODA

2.6141.39.35541.29.75399.9 Other bilateral debt

2.9101.96.13655.46.43553.5 Paris club countries

2.139.43.21885.83.31846.4 Other countries

26.31057.18.45076.07.24018.9 Suppliers' & buyers' Credits

10.61496.325.915586.225.314089.9 International & regional organizations

(23.8)(832.6)4.42660.46.23493.0 Egyptian bonds and notes

13.82250.030.918550.029.216300.0 Long- term deposits

(30.0)(58.7)0.2136.70.4195.4 Private sector (Non guaranteed)

13.5948.113.27965.812.67017.72- Short- term debt :

51.3758.63.72236.92.71478.3 Deposits

3.4189.59.55728.99.95539.4 Other Facilities and loans

Source: Loans & External Debt Department- CBE

* Provisional.

** The difference from World Bank data is in short-term debt.

+ According to the agreement signed with Paris club countries on 25/5/1991

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9 -

(5/6) External Debt Structure

End of

(US$ mn)

ChangeSept. 2016*June 2016

(US$ mn)

Change+(-)%Value%Value

4388.2100.060152.6100.055764.4Total3633.772.643680.271.840046.5US dollar **877.112.97781.212.46904.1Euro(44.1)4.22549.34.72593.4Japanese yen(25.0)4.22509.54.52534.5SDRs34.44.02424.94.32390.5Kuwaiti dinar4.91.2736.71.3731.8Egyptain Pound

(57.3)0.3165.50.4222.8Swiss franc7.00.2140.70.2133.7Saudi riyal(6.0)0.156.20.162.2Danish krone(8.4)0.138.20.146.6Canadian dollar1.10.135.30.134.2UAE dirham

(14.2)0.132.30.146.5Sterling pound(0.1)0.02.10.02.2Norwegian krone(6.1)0.00.50.06.6Swedish krona(8.8)0.00.00.08.8Australian dollar

Source: Loans & External Debt Department- CBE

* Provisional.

** Including other obligations in US dollar.

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Sept. 2016*June 2016 End of

(5/7) Distribution of External Debt by Major Currencies

Periodical Publications of the Central Bank of Egypt

Periodicity Language Name of Publication

Monthly Arabic and English 1 -Monthly Statistical Bulletin

Quarterly Arabic and English Economic Review2-

Every fiscal year Arabic and English Annual Report3-

Quarterly English External Position of the4-

Egyptian Economy

Note: - All publications of the Central Bank of Egypt are available on the CBE's website:

www.cbe.org.eg

central bank of egypt - الصفحة الرئيسية...economic review vol. 57 no. 1 2016/2017...

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