Egypt’s balance of payments netted USD 11.0 bn in the first three quarters of FY 2016-17, of which USD 9.0 bn came after the EGP float in November, as the CBE made sure to outline in a bold typeface. The increase was driven almost entirely by the capital and financial account, which registered USD 24.6 bn during the period, from USD 14.6 bn in the comparable period in FY 2015-16. Egypt saw a net FDI inflow of USD 6.6 bn in the first three quarters of FY2016-17, mostly going to the oil sector. Portfolio investments grew to USD 7.8 bn during the same period, from USD 1.5 bn last fiscal year, on the increase in foreigners’ investment in Egyptian treasuries.

Merchandise exports increased by 19.3% y-o-y in the first three quarters, driving the trade deficit down by 9.4% y-o-y to USD 27.0 bn and the current account deficit by 12.4% y-o-y to USD 13.2 bn. The export increase was supported by the competitive advantage of the prices of Egyptian exports following the EGP exchange rate liberalization.

Although tourism receipts over the three-quarter period remain on the retreat with a 25.9% decrease, the silver lining is that 3Q 2016-17 tourism receipts figures increased by 128.3% y-o-y to USD 1.3 bn. Still underperforming, however, is the Suez Canal, with receipts falling 4.2% y-o-y over a decline in net transiting tonnage. Remittances inflows remain strong and have increased by 10.9% y-o-y to USD 4.62 bn.

Foreign companies operating in the market also managed to repatriate a collective USD 2.21 bn of their profits during the 9M2016-17.