The Egyptian economy is awash in cash amid an unprecedented surge in liquidity, but whether this wave will translate into broad-based economic relief remains uncertain. In March 2025, Egypt’s domestic liquidity surged to a record EGP 12.566 trillion (USD 252.22 billion), an increase of EGP 930.4 billion (USD 18.67 billion) over three months, according to data released by the Central Bank of Egypt (CBE). The sharp rise in domestic liquidity highlights mounting pressures and potential stimulus within the country’s financial system. Domestic liquidity, often referred to as M2, encompasses the total money supply, known as M1, available within the economy, as well as cash in circulation and in all types of bank deposits. Liquidity is measured by M2 and serves as a critical indicator of economic health and banking sector stability. The latest figures also show a notable rise in the money supply subset, M1, reaching EGP 3.209 trillion (USD 64.35 billion) in March, with currency in circulation outside the banking system climbing to EGP 1.296 trillion (USD 26 billion). The surge is driven primarily by a jump in non-government deposits in local currency, which grew to EGP 8.195 trillion…
Egypt’s Financial Shift Highlights the Role of Domestic Liquidity
May 24, 2025
By Nadine Tag
Journalist
