Egypt’s money supply (M2) growth rate eased to 0.8% m/m in January 2014, totalling EGP 1.398trn, from a 2.2% m/m rise in the previous month, Egypt’s central bank reported in a monthly bulletin. The growth in M2 was driven by a modest 0.9% expansion in M1, consisting of demand deposits and money in circulation, to EGP 377bn with a strong rise in currency in circulation by 1.6% m/m to EGP 255bn. The latter offset a slight decline in demand deposits by 0.6% m/m to EGP 121bn in January 2014.
Meanwhile, quasi-money expanded by 0.7% m/m to EGP 1.021trn on the back of 0.9% m/m growth in time and saving deposits in local currency to EGP 804.8bn. Demand, time and savings deposits in foreign currency declined by 0.1% to EGP 216.7bn.