Banknotes issued by the Central Bank of Egypt (CBE) increased in June 2018 to 11.41% of the gross domestic product (GDP).
A recent statement by the CBE said that the CBE issued money worth EGP 486.726bn in June compared to EGP 474.941bn in May, up by EGP 11.785bn.
Issued banknotes increased to 15.06% of the GDP in June 2014, which is the highest record, while the lowest point was registered in January and February 2018 at 10.42% of the GDP.
The CBE added that June 2018 saw issuance of EGP 281.109bn worth EGP 200 bills, EGP 160.824bn of EGP 100 bills, and EGP 25.128bn worth EGP 50 bills.
Moreover, issued banknotes of EGP 20 bills reached EGP 8.154bn, along with EGP 4.994bn worth EGP 10 bills, EGP 4.516bn worth EGP 5 bills, EGP 1.387bn worth EGP 1 bill, EGP 441m of EGP 0.5 bill, and EGP 173m worth EGP 0.25 bills.
The banks law and credit number 88 for 2003 gave the CBE the right to issue banknotes and set their specifications.
According to a previous statement issued by the CBE, the issuing of banknotes is based on the study and analysis of macro-economic variables—mainly the GDP.
The CBE explained that it issues new banknotes to replace old or damaged banknotes, so as to preserve the Egyptian currency’s good image.
This process does not lead to an increase of cash, refuting claims that the issuance of new cash aims to finance the state budget deficit.