Emerging markets experience sharpest capital outflow in March since 2008: Central Bank of Egypt – ZAWYA

Emerging markets experience sharpest capital outflow in March since 2008: Central Bank of Egypt – ZAWYA

Emerging markets experience sharpest capital outflow in March since 2008: Central Bank of Egypt. The hydrocarbon trade balance turned into a slight deficit in Q4 of 2019, compared to a surplus in Q4 of 2018.. The CBE said that the net services surplus continued to decline on annual terms in Q4 of 2019, for the second consecutive quarter.. Remittances continued to increase on annual terms in Q4 of 2019, for the second consecutive quarter.. Net foreign direct investment (FDI) declined on annual terms in Q4 of 2019, for the first time since Q3 of 2018.. Net international reserves declined to register $40.1bn in March.. Public investments picked up in Q4 of 2019 to record real growth of 19.7%, after contracting in the previous quarter.. The drop in excess liquidity has led to an increase in interbank activity and the narrowing of the spread between the overnight interbank rate and the mid-corridor rate.. Interbank rates have declined by 0.9x the 300bps policy rate cut in March 2020, supported by the suspension of all the open market operations' auctions.. decline in the weighted average yield was supported by the increase in demand, which was supported by the CBE's suspension of all open