[ad_1]
In a recently released report, the Central Bank revealed further increases in the country’s total cash reserve, amounting to EGP 132.1 billion, or the equivalent of 15.4 percent, over the course of the year. fiscal year 2020/2021. Thus, the total reserve reached at the end of June 2021. at the level of 987.7 billion pounds, and the bank announced in its report that this increase was manifested in the form of an increase in liquidity flowing out of the coffers of the Central Bank, equivalent to 71.3 billion pounds, at a value of 10.9%, in addition to the deposits of banks in local currency with the Central Bank, which increased by 29.8%, of which the equivalent to 60.8 billion pounds.
High cash reserve
The central bank said the increase in the value of the country’s cash reserves resulted from the rise in the banks’ net liabilities, worth £ 78.9 billion, as well as the bank’s net foreign assets, which increased by 67.6 billion. pounds, while on the other hand, the value of the negative balance has decreased.
What is reserve money?
Reserve currency represents the base of money in the broadest definition, and is called base money. In another version, the title of great power currency is given. Reserve currency consists mainly of cash circulating outside the coffers of the central bank, in addition to bank deposits in the central bank for local currency, and the central bank relies on reserve currency as one of the intermediate operational objectives of the bank’s monetary policy, through which the local liquidity is managed, and the reserve currency of the country, as well as its corresponding assets, can be considered as another classification of the positions of the situation financial position of the Central Bank, and the increase in the reserve can be considered as a positive indicator of the improvement of the Egyptian economy, as one of the positive axes of the economic reform program that the country has started to implement. implemented.
Source link
