The Central Bank of Egypt (CBE) has announced a notable turn-around with a net profit of Egyptian Pounds (EGP) 22.834 billion (~$470.7 million) for June 2024, marking its first profitable quarter in seven years. This is a significant recovery from the EGP 86.283 billion (~$1.78 billion) loss reported in June 2023.
Since November 2022, the CBE has stopped subsidizing interest rates for five key sectors:
- Low-income housing
- Middle-income housing
- Industry
- Tourism
- Dual-fuel vehicle conversions
and others.
These responsibilities have been shifted to the Ministry of Finance following directives from Prime Minister, Mostafa Madbouly. This move was part of broader economic reforms aligned with the International Monetary Fund’s (IMF) economic reform program, easing the financial burden on the CBE.
According to a recent June 2024 report analysis published by BitKE, Egypt’s outstanding debt to the IMF now stands at over $260 million.
🇱🇾🇧🇼🇪🇷REPORT | Here Are the 3 #African Which Have Never Taken a Loan From the #IMF
48 African countries collectively owe $42.2 billion to the IMF. This is about one-third of the IMF’s total outstanding credit implying that the African continent is a major borrower of the IMF.… pic.twitter.com/2iHORiraPU
— BitKE (@BitcoinKE) June 21, 2024
The CBE’s profit from investments in subsidiary companies reached EGP 7.052 billion ($145.6 million) in June 2024, up from EGP 2.990 billion ($61.7 milion) in June 2023. Key contributors to this profit include:
- $88.8 million from the Arab African International Bank
- $34.5 million from the Arab International Bank
- $392,220 from the Egyptian Mortgage Refinance Company
- $9.6 million from Misr for Central Clearing, Depository and Registry (MCDR)
- $598,652 from the Credit Guarantee Company
- $536,722 from the Digital Financial Identity Company
- $9.97 million from MCDR
- $928,943 from EgyCash for technological cash solutions
- $289,004 from Tiera Finance
The CBE’s total assets also saw a substantial increase, rising to EGP 6.057 trillion ($125 billion) in June 2024, up from EGP 4.480 trillion ($92.5 billion) in June 2023.
In terms of international financial investments:
- The CBE’s capital contributions grew to EGP 22.641 billion in June 2024, from EGP 19.378 billion the previous year [June 2023]
- The bank increased its stake in the Islamic Development Bank to EGP 7.071 billion, up from EGP 5.310 billion, and
- Raised its investment in the African Export-Import Bank to EGP 9.334 billion, compared to EGP 8.515 billion
- Additionally, its investment in the Africa Finance Corporation rose to EGP 3.121 billion, up from EGP 2.438 billion
- Investments in subsidiaries and associated companies also climbed to EGP 75.844 billion in June 2024, up from EGP 45.644 billion the previous year.
The CBE’s gold reserves have also surged to EGP 454.925 billion ($9.4 billion) in the first half of 2024, up from EGP 238.6 billion $4.9 billion) in June 2023.
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