A report issued by the Central Bank of Egypt stated that the Egyptian balance of payments recorded a deficit of $ 8.58 billion during the period from July 2019 until the end of June 2020.
The Central Bank indicated that the Egyptian economy was able to absorb as a result of the global financial shock arising from the repercussions of the Corona virus, as the current transactions of the Egyptian economy with the outside world witnessed stability in the level of deficit in the current account during the past fiscal year, the second half of which witnessed the negative repercussions of the spread of the Corona pandemic .
He stated that the current account deficit increased slightly to record about $ 11.2 billion during the fiscal year 2019/2020, compared to about $ 10.9 billion during the fiscal year 2018/2019.
The Egyptian Central Bank attributed the slight rise in the current account to the decline in the service balance surplus and the high deficit of the investment income balance, which represents the difference between the returns collected and those paid to and from the outside world for each of the securities portfolio investments, direct investments, bank deposits and external debt.
He explained that the slight rise in the current account deficit came against the unanimous expectations of a strong shock to the current account deficit in most countries of the world, not only in Egypt. He pointed out that the noticeable improvement in the non-oil trade balance and the increase in current transfers without compensation had contributed to alleviating this shock on the Egyptian economy.