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[Egypt] Household savings dominate total bank deposits

[Egypt] Household savings dominate total bank deposits

Egypt’s household sector continues to dominate total deposits in banks standing at 75.3 per cent of all total deposits, the Central Bank of Egypt has said in a report.

In what is seen as growing trust by households in the banking sector, the report further stated the total household deposits have been growing over the recent months.

The bank stated in its report that the household sector acquired about 78 per cent of the total local currency deposits and about 63.3 per cent of the total foreign currency deposits.

According to the CBE, total deposits of the household sector in banks reached about $145 million in May, of which about $122 million is in local currency and about $22 billion in foreign currencies.

The household sector accounts for the largest deposits in banks and includes those of individuals and family businesses, said Haitham Abdel Fattah, director general of the treasury of the Industrial Development and Workers Bank of Egypt.

Abdel Fattah also said that investing savings in the Egyptian market or maintaining their value is done in several ways. One of these ways is to keep savings in the form of US dollars, gold, real estate, stock market investments, or in savings instruments.

He also added that investing in gold has many risks related to fluctuations in the price of gold in world markets. Investment in real estate requires experience in the field and a huge liquidity that many people may not have.

Investment in the stock market has many risks and requires experience that is not usually available to individuals. Therefore, it is better to keep savings in banks in the form of local currency or foreign currency, or keep them in US dollars, according to Abdel Fattah.

 www.cbe.org.eg

 

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