Egypt’s capital inflows fell by half in FY2019/20 amid coronavirus pandemic: CBE

Egypt’s capital inflows fell by half in FY2019/20 amid coronavirus pandemic: CBE

Net inflows of the capital and financial account dropped by half to $5.4 billion in FY2019/20, down from the $10.9 billion registered in FY2018/19, according to the Central Bank of Egypt (CBE).

In a report issued Monday on the balance of payments performance in FY2019/20, the CBE attributed this decline in net inflows to the decrease in total inflows of Foreign Direct Investments (FDIs) in FY2019/20 from %16.4 billion in FY2018/19 to $15.8 billion - a 3.4 percent decline.

Meanwhile, according to the report, total outflows rose by 2.8 percent to $8.4 billion in FY2019/20 from $8.2 billion in FY2018/19.

These updates resulted in a contraction of 9.5 percent in net inflows of FDIs headed to Egypt in FY2019/20 to $7.5 billion from $8.2 billion in FY2018/19.

The report revealed that the current account deficit incresaed to $11.2 billion from $10.9 billion in F 2018/19, driven by the decline in the services surplus and the increase in investment income deficit, whichrepresents the difference between the investment income earned and paid from and to the external world on portfolio investment, direct investments, bank deposits and foreign debt.

Moreover, the report showed that net investments in the oil sector declined