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Foreign trade and payments: The current-account surplus also widens
POSTED: 11:46 a.m. EDT, February 20,2007

The surplus on the services (invisibles) balance widened, in the same period, to US$3.1bn, from US$2.2bn a year earlier, thanks to a large increase in receipts from the Suez Canal (up by 14%, to US$1bn) and a smaller rise in tourism revenue (up by 5.6%, to US$2.5bn). Thanks to rising global interest rates, investment income also grew markedly, by 66.9%, to US$646m, up from US$387m a year earlier. Invisibles payments, however, declined slightly, to US$2.2bn, from US$2.5bn a year earlier, owing to small contractions in transportation and government transfers. Finally, the surplus on the balance of transfers widened slightly, by US$62m to US$1.4bn. The net result was a clear widening of the current-account surplus, from US$208m in July-September 2005 to US$1.4bn in the same period of 2006.

Capital account, Jul-Sep
(US$ m)
2005 2006
Capital & financial account 1,882.9 347.9
Capital account 0.0 -38.8
Financial account 1,882.9 386.5
Direct investment outflows (net) -18.6 -58.2
Direct investment inflows (net) 1,947.0 3,237.1
Portfolio investment outflows (net) 78.5 -96.0
Portfolio investment inflows (net) 2,579.2 37.9
Bonds 2,786.1 -344.0
Other investment (net) -2,703.2 -2,734.3
Net borrowing 34.1 80.0
Medium & long term loans (net) -278.1 -440.0
Drawings 239.3 19.6
Repayments -517.4 -459.6
Medium term suppliers credit (net) -94.9 -122.4
Drawings 58.1 7.8
Repayments -153.0 -130.2
Short term suppliers credit (net) 407.1 642.4
Other assets -2,293.8 -2,551.1
Central bank 5.6 -28.4
Banks -1,550.1 -1,789.8
Other -749.3 -732.9
Other liabilities -443.5 -263.2
Central bank 1.7 3.5
Banks -445.2 -266.7
Net errors & omissions -278.6 -723.7
Overall balance of payments 1,811.9 1,061.1
Change in reserve assets (- = increase) -1,811.9 -1,061.1
Source: Central Bank of Egypt.
From: BizChina
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