Egypt: CBE relaunches monetary policy report for Q1 2025
Arab Finance: The Central Bank of Egypt (CBE) relaunched its quarterly Monetary Policy Report (MPR) for the first quarter (Q1) of 2025 in line with its strategy to implement an inflation-targeting framework and improve its policy transparency.
The report highlighted that M2 growth has accelerated to an average of 30.6% in Q1 2025, compared to an average of 19.5% in Q1 2024. This was driven by the banking system's net foreign assets (NFAs) and the replenishing of FX reserve buffers.
On a monthly basis, M2 growth retreated to 25.8% in March 2025, compared to 33.9% in February, as the revaluation effects dissipated.
The banking system's NFAs witnessed a positive performance, recording $15.1 billion in March 2025, after remaining in negative territory since February 2022.
This came backed by f the Ras El-Hikma investment deal, as the portfolio inflows improved following the exchange rate unification, attributing to a rebound in workers' remittances and the support of multilateral institutions.
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