The household sector accounted for 62.8% of total deposits at banks in July 2016, according to an analysis conducted by Daily News Egypt using figures announced by the Central Bank of Egypt (CBE).
The analysis showed that deposits of the sector increased to reach EGP 1.343tn in July, out of the total deposits in banks with register EGP 2.138tn, including government deposits.
According to CBE numbers, the sector raised it deposits in local currency by EGP 8.849bn through July, registering EGP 1.125tn from EGP 1.166tn in June.
Meanwhile, deposits—made by household sector clients—in foreign currencies increased by EGP 2.2729bn or $310m at an exchange rate of EGP 8.78 per US dollar.
Deposits of the sector in foreign currencies reached EGP 209.22bn in July, versus EGP 206.491bn in June, accounting for 63.26% of total deposits in foreign currencies.
The household sector, which has the largest share of deposits at banks, refers to all individual and family companies that are managed by one person or one family, said the head of a treasury at a specialised bank operating in Egypt.
He explained that clients of the sector often keep their savings in the form of deposits or saving certificates to obtain secure, stable and sustainable revenue and void other investments that are risky.
“Investing savings in Egypt if often done by buying assets like US dollars, gold, real estate, or by investing in the Egyptian Exchange or through saving vessels at banks,” he said.
Furthermore, he explained that investing in gold is risky, considering the fluctuations of the global market. “Real estate requires experience and large sums of cash,” he added.
He noted that investing in the stock exchange carries many risks and requires experience. “This leaves individuals with one alternative: saving at banks in Egyptian pounds or foreign currencies, or keeping the money at home, which could also be risky.”
CBE figures showed that the private business sector account for 17.47% of all deposits at banks—accounting for EGP 373.692bn, including EGP 273.72 in the national currency and EGP 99.972bn in hard currency.
The public business sector meanwhile accounted for 2.8% of deposits.
According to the CBE, deposits of that sector recorded EGP 60.061bn in July, including EGP 42.027bn in Egyptian pounds and EGP 18.034bn in hard cash.
The government accounts for approximately 16.767% of the total deposits in banks.
The size of government deposits registered EGP 358.588bn in July, of which EGP 261.806 are in Egyptian pounds and EGP 96.782 in hard currency.