Egypt saw net portfolio outflows of $7.9 bln from July to March of FY2019/2020 amid COVID-19 crisis: CBE
Doaa A.Moneim, , Tuesday 28 Jul 2020

Egypt's capital and financial account of the balance of payments witnessed a net outflow estimated at approximately $ 1.1 billion from January to March of FY2019/2020, while the cumulative period (July/March) of FY2019/2020 recorded a net inflow of about $4.1 billion, benefiting from the inflows achieved during the first half of the current FY2020/2021 due to the COVID-19 crisis, the Central Bank of Egypt (CBE) said on Monday.

In its balance of payments report, the CBE revealed that portfolio investment in Egypt registered net outflows of $7.9 billion in July/March of FY2019/2020, compared to net inflows of $1.1 billion, impacted by portfolio capital outflows.

“The impact was particularly felt in the January/March period of 2020, in the wake of the pandemic, where portfolio investment in Egypt recorded net outflows of $8.2 billion (compared to net inflows of $6.9 billion in the same period of 2019)”, the report said.

Total inflows of foreign direct investment (FDI) in Egypt saw an increase by $277.6 million to reach $12.7 billion, up from $12.5 billion, while total outflows went up by $872.6 million to hit $6.8 billion, up from $5.9 billion, according to the report.

Such an increase led to a contraction of $595 million in net FDI in Egypt, recording a net inflow of $5.9 billion, down from $ 6.5 billion, basically because of the drop of $58.5 million in net FDI in Egypt in January/March of 2020, to register a net inflow of $970.5 million, down from $2.3 billion in the same period of 2019 amid heightened uncertainty unleashed by the COVID-19, which dramatically impacted foreign investors’ plans and FDI flows worldwide, according to the report.

Net disbursements of medium- and long-term loans and facilities declined as well from January to March 2020 with $1 billion, recording net disbursements of $2 billion, down from $3 billion.