Central Bank Of Egypt Research Articles

The Impact of The Use of Sukuk as A Financing Tool on Small and Micro Projects in Egypt

The research aims to investigate and study the impact of using sukuk as a financing tool on small and micro projects in Egypt by testing the hypothesis that there is a statistically significant impact of the value of Egyptian sukuk on the loans to small and micro enterprises during the period (2011-2022). The data were collected from the Central Bank of Egypt, Central Agency for Public Mobilization, World Bank, Economic Reports for Egypt and Statistics of annual reports during the period, and were subsequently analyzed using descriptive analytical method. Accordingly, the findings indicated that the impact of the independent variable of the value of the Egyptian sukuk on the dependent variable of loans to small and micro enterprises was significant at the level of 0.01.and It was found that whenever the value of Egyptian sukuk increased by 1%. The loans to small and micro projects increased by 0.006392%.

The impact of fiscal policy on female labor force participation in Egypt

There is no doubt that women play a vital role in all aspects of economic activities around the globe. However, despite the great efforts that governments have made over the past three decades to increase women’s integration into the labor market, their participation is still relatively low compared to men. On the other hand, economic literature argues that the government can use fiscal policy tools such as tax revenue and spending to decrease gender inequality in the labor market. The aim of this paper is to investigate the impact of government spending and tax revenue shocks on the female labor force participation rate (the share of women in the total labor force) in Egypt. Annual time-series data were collected from the Central Bank of Egypt and the World Bank from 1990 to 2021, where the vector autoregressive (VAR) model and impulse response functions have been used. The results suggest that government spending and tax revenue shocks increase gross domestic product (GDP) growth rate, female labor force participation, and inflation. Results validated the research hypotheses and showed that a one standard deviation shock to either government spending or tax revenue has a positive impact on female labor force participation. Therefore, the study recommends that using an expansionary fiscal policy may increase the accessibility of Egyptian women to the labor market.

FINANCIAL TECHNOLOGY IN EGYPT BETWEEN OPPORTUNITIES AND CHALLENGES

In Egypt, the Central Bank of Egypt is working to launch a new phase of financial technology, as one of the pillars of promotion of economic reform, and an effective and supportive mechanism for integrating the informal economy for individuals and institutions within the structure of the official economy of the state, and a way to Reality to raise and improve the standard of living and reduce poverty rates by containing certain segments of society from the marginalized, low-income and owners of small, medium and micro enterprises. The methodologies used explain the current state of financial inclusion and financial technology in Egypt, as well as the development of a law regulating and developing the use of financial technologies in non-banking financial activities in order to develop a mechanism for integrating the informal economy. The findings showed that enhancing the efficiency of the financial system and the effectiveness of monetary policy, are reflected in terms of financial stability which is considered one of the pillars of growth and transformation of the digital economy.

Interrelation Dynamics between Exchange Rate and Stock Market Returns in Egypt

This paper investigates the dynamics between exchange rate and stock market returns in Egypt that have been found to be interlinked with additional two variables, economic growth and inflation. To conduct such a research, the paper employed Autoregressive Distributed Lag (ARDL) model and Granger Causality tests using monthly data from Q1 2012 to Q3 2022. Econometric estimations prove that there exist a long run relationship among these four variables through the equation LNEGX30 = 1.1129 LNEXR + 2.3671 LNGDP – 2.5829 LNM2. The paper investigates that it is the stock market returns that lead to exchange rate fluctuations in the Egyptian economy. Similarly, the exchange rate volatilities lead to fluctuations in both economic growth rates and inflation rates. Indeed, stock market performance granger causes economic growth through a unidirectional causality that goes from stock market to economic growth. Therefore, the paper recommends several adjustments for the Egyptian financial policy through giving more incentives to over-performed and strong companies to be listed in the stock market. In addition, the Egyptian stock market is in need to develop newly established financial products, such as Exchange Traded Funds (ETFs), that would promote value and volume of trade in the market that would lead to boost economic growth. Finally, the central bank of Egypt, through reducing money supply growth rate, would target inflation rate to become one-digit to save the value of the Egyptian Pound from continuous devaluation and structural breaks.

Money Supply Behavior in Egypt (2004-2019)

This study aims to investigate whether money supply behaviour in Egypt is exogenously or endogenously determined using data from 2004 to 2019. It aims to identify the determinants of money supply in Egypt and the most important tools used by the central bank to manage it. The study employs the Johansen-Juselius test (1990) to examine the long-run determinants of money supply in Egypt and the error correction model to examine the short-run determinants. We conclude that real GDP, discount rate, budget deficit, and net foreign assets have significant long-term effects on money supply, whereas exchange rate and net domestic assets have no effects. We recommend higher degrees of cooperation between the Central Bank of Egypt and the institutions responsible for the formulation of financial and commercial policies. we also recommend that the central bank continue monitoring foreign assets and strengthen its supervisory activities on banking institutions.

Bank Employee Perceptions of Corporate Social Responsibility Practices: Evidence from Egypt

This study examined bank employee perceptions regarding corporate social responsibility (CSR) practices in Egypt as a developing country. In particular, it explored bank employee perceptions towards the CSR aspects on which banks should focus. It also investigated whether factors such as bank type (i.e., public or private), employee age, experience, job position, and number of CSR training programs undertaken can affect this perception. Data were gathered through a questionnaire distributed to both public and private bank employees. The final sample consisted of 127 employees. SPSS was used to analyse the data. We found that bank employees placed different importance on the CSR aspects on which banks should focus. In particular, they prioritized employment and workplace-related aspects such as operational efficiency, financial literacy, equal employment opportunities, and workplace safety. In contrast, they placed less emphasis on environment-related aspects such as greenhouse gas emission and energy consumption. We also found that bank type, age, employee experience, job position, and number of CSR training programs undertaken could affect the perceptions of bank employees regarding the CSR aspects on which banks should focus. While there is a growing stream of research on CSR, prior research lacks CSR practices in developing markets, especially in the banking sector. To the best of our knowledge, this is the first study to look at the importance and priorities of CSR aspects in Egypt—one of the fastest-growing economies in the developing world. Based on the findings of this study, policymakers and regulators in Egypt such as the Central Bank of Egypt and the Egyptian Banking Institute are advised to request banks to pay more attention to environmental-related aspects of CSR to keep pace with Egypt 2030 vision and develop an action plan that helps increase bank employee awareness regarding the importance of CSR practices and engage employees further in developing their banks’ sustainability strategy.

The influence of Egyptian pound flotation on capital structure determinants for listed Egyptian companies

In Egypt, an essential economic transformation program was started in prior years to enhance Egyptian economic progress and the liberalization of the Egyptian pound (EGP) exchange rate (International Monetary Fund [IMF], 2017). By the end of 2016, Egypt had an EGP flotation where significant changes took place in trading volumes, stock issuance, and interest rates (Central Bank of Egypt, 2018). One of the most vital decisions in any company is the capital structure decision. Therefore, this research strengthens the capital structure literature by investigating the influence of Egyptian pound flotation on capital structure determinants for the listed Egyptian companies during the period from 2014 to 2018, which is a research issue, not examined in Egypt before. A sample of 78 non-financial companies listed on the Egyptian Stock Exchange (ESX) over 5 years is used; the research examines the influence of a company’s profitability, tangibility, size, growth, liquidity, non-debt tax shields, and flotation on capital structure. Adopting panel data methodology, the findings indicate that the company’s profitability, tangibility, size, and liquidity are significant determinants of the capital structure of Egyptian companies whereas growth, non-debt tax shields, and flotation are insignificant. A weak influence of EGP flotation on determinants of capital structure and the variations before and after flotation is in the significance level of the determinants

The Impact of Macroeconomic Variables on Stock Price Change Percentage for the ESG Listed Companies in Egypt

This study was conducted to see the impact of macroeconomic factors, Gross domestic product, interest rate, inflation rate, money supply and the exchange rate on stock price change percentage of the ESG listed companies according to the approach of Arbitrage Pricing Theory (APT). The data used in this research is secondary data from the central bank of Egypt and the Egyptian Stock Exchange. the total sample of this research are 20 out of 30 companies listed in The Egyptian Stock Exchange (EGX) for the period from 2016 to 2020. The analysis technique used descriptive statistics, correlation matrix and multi regression analysis. The results showed that macroeconomic factors especially interest rate and inflation have a significant negative impact on stock price changes of EGX30 ESG (Environment, Social and Governance) companies with a lower effect than traditional companies where their regression analysis showed percentage exceeding ours (16%). (Rageb, 2018) (Awd, 2015) Our main recommendation that all the companies within Egypt have to work hard to transform towards the ESG practices as from the results we have investigated it has low level of risks.

The impact of the reforms of the 2000s and the Arab Spring of 2011 on the performance of the Egyptian banking sector

This paper aims to assess the current condition of the Egyptian banking sector, based on the past reforms of the 2000s. This analysis is based on data from the Central Bank of Egypt (CBE), data from the Egyptian banking sector and the literature review. The main fi nding is that despite many changes in the political and economic scene that drove the country into a crisis, the Egyptian banking sector was able to work well in the post-2008 period, achieving high growth rates. This study contributes to the academic literature on factors infl uencing fi nancial development in emerging counties, based on the analysis of the Egyptian banking.

Interest rate setting in Egypt: a NARDL approach for estimating backward-looking monetary policy reaction function

ABSTRACT The role of inflation versus output and exchange rate in designing monetary policy in Egypt has been subject to considerable debate in literature, even after the proclamation of price stability as the monetary policy objective in 2004 and the adoption of flexible exchange rate system in 2016. This study aims to investigate the main drivers of interest rate setting in Egypt throughout the period from 2005 to 2019. In this context, both an ARDL and NARDL econometric techniques are employed to estimate the backward-looking augmented Taylor monetary policy reaction function. The estimated equation estimates policy rate as a function in lagged inflation, lagged output gap, lagged policy rate, change in real effective exchange rate, in addition to other variables. The importance of this study arises from the lack of recent studies assessing interest rate setting in Egypt. The study concludes that monetary policy in Egypt has been accommodative to inflation and that Central Bank of Egypt responds asymmetrically to shocks in inflation, output and exchange rate.

THE IMPACT OF PUBLIC EXPENDITURE ON THE EDUCATION AND HEALTH SECTORS TO ACHIEVING THE SUSTAINABLE DEVELOPMENT GOALS APPLIED STUDY ON THE ARAB REPUBLIC OF EGYPT

The importance of public spending comes as one of the most important tools for fiscal policy, which expresses the state’s role in the extent to which it interferes with various aspects in economic and social activities, which is necessary in order to achieve economic balance and avoid crises within the country. The study aimed to identify the extent of the importance of the role of public spending on the education and health sectors and the contribution of increasing the rates of these two sectors to achieving the goals of sustainable development in its three dimensions (economic, social, and environmental) .The researchers assumed in their study that it increases the rate of public expenditures in the different sectors. This is also accompanied by an increase in the proportion of spending on the (education and health) sectors, which contributes to achieving the sustainable development goals for the two sectors (education and health.( In their study, the researchers relied on the descriptive and analytical approach of cross-sectional data for a time series of (ten) years to study and analyze the ratios of public spending on these two sectors and the role of these investments in increasing the growth rates of these two sectors, through annual reports and bulletins issued by the Central Bank of Egypt, as well as the statistics Issued by the Central Agency for Public Mobilization and Statistics, depending on the analysis of variance for the years of the time series and the use of the correlation coefficient (Pearson) to determine the strength and direction of the relationship between the study variables. The study found that there is a positive relationship between the variable (the proportion of spending on education) and the dependent variable (rates of public expenditures), while the inverse relationship between the independent variable (the proportion of spending on health) and the dependent variable (public expenditures). The researchers recommended the need to pay attention to expanding the public expenditures department in the sectors (education and health) with a size greater than the current investment size because of their effective impact on achieving a good standard of living on the one hand, and on the other hand increasing opportunities to obtain various jobs, which contributes to increasing revenues.

The impact of the expected credit loss model under IFRS 9 on loan loss recognition timeliness: early evidence from the Egyptian banks

The central bank of Egypt (CBE) has obligated the Egyptian banks as of 2019 to apply IFRS 9 to provide more timely information about the expected credit losses (ECL). However, the implementation of IFRS 9 concerning the ECL requires a significant judgment that may lead to opportunistic accounting behavior. This research aims to examine the impact of the expected credit loss (ECL) model under IFRS 9 on loan loss recognition timeliness (LLRT) of the Egyptian banks, and also investigates the moderating effect of corporate governance (CG) efficiency namely: board size (BSIZE), board independence (BIND), institutional ownership (INSTIT), CEO duality (DUAL), and audit quality (AQ).The research uses data extracted from the quarterly financial reports for a sample of Egyptian banks from 2018 to 2019, the data were processed using the panel corrected standards errors (PCSE).The results reveal a significant positive effect of applying the ECL model on LLRT, also, the results show a positive effect of BIND on the association between ECL model and LLRT, conversely, there is a negative effect of DUAL, while, there is no effect for each of BSIZE, INSTIT, and AQ.This research introduces early empirical evidence from the emerging markets about the implications of the ECL model under IFRS 9, the research results are important for regulators and investors because it supports the effectiveness of the new model, also, the results are important for future reform programs undertaken by regulators in Egypt such as CBE, moreover, the research adds to the literature of LLRT, by providing evidence regarding the effect of applying the ECL model on LLRT.

THE RELATION BETWEEN CENTRAL BANK INDEPENDENCE AND INFLATION RATE IN EGYPT: AN EMPIRICAL ANALYSIS DURING 1998-2019

This paper examines the relation between granting central banks more independence represented in both its manifested legal charter as well as actual practices adopted and inflation in Egypt during the period from 1998-2019. To do so, this paper first looks at the evolution of different central bank independence (CBI) measures and adopts the most comprehensive relevant one. Consequently, it runs a regression model adopting an autoregressive distributed lag (ARDL) model, regressing the dependent variable inflation on its determinants of legal CBI, actual CBI, M2 and openness, to capture such relation in both the short and long term time dimensions in the case of Egypt. The paper further provides an interpretation of computed outcomes, where it presents robust evidence of an inverse relation between inflation and CBI in Egypt in the period under study in its legal and actual form and in both the short-run and the long-run. Keywords: Central bank independence, Central Bank of Egypt, Inflation, Autoregressive distributed lag, unit root testJEL Classifications: E31, E42, E58, E370DOI: https://doi.org/10.32479/ijefi.10941

Determinants of Real Exchange Rate Evidence: from Egypt

In November 2016, the Central Bank of Egypt (CBE) had announced the adoption of a floating exchange rate regime. Determining the equilibrium exchange rate is a chronic problem in the Egyptian economy, this means that the exchange rate is determined according to several variables. So, this research comes to examine the determinants of the exchange rate dealing with money supply, trade openness, and foreign exchange reserves. This research uses time-series data from 1990 to 2018 and depends on the method of co-integration (Autoregressive Distributed Lag Model, ARDL) through which the relationship is estimated in the long run, and depends on the Error Correction Mechanism (ECM) method to estimate the relationship in the short run, and the model is applied through the statistical program EViews. Besides using the descriptive method to view and analyze the exchange rate problem, the variables, and interpretation of the results. This study revealed that foreign exchange reserves and broad money have a significant and positive impact on the real exchange rate in the long-run, as well as trade openness and foreign exchange reserves have a significant impact and positively related to the real exchange rate in the short-run. The study also found, If the real exchange rate is deformed, it will need about 21 months to return to equilibrium.

Asymmetric impact of exchange rate changes on stock returns: evidence of two de facto regimes

PurposeThis study focuses on Egypt’s recent experience with exchange rate policies, examining the existence of spillover effects of exchange rate variations on stock prices across two different de facto regimes and whether these effects, if any, are asymmetric.Design/methodology/approachThe empirical analysis is carried out using a nonlinear autoregressive distributed lag modeling framework, which permits testing for the presence of short- and long-run asymmetries. Relevant local and global factors are also included in the analysis as control variables. The authors divide the entire sample into a soft peg period and a free float one.FindingsOver the soft peg regime period, both positive and negative changes in EGP/USD exchange rates seem to have a significant impact on stock returns, whether in the short or long run. Short-term asymmetric effects vanish in the free float period, while long-term asymmetries continue to exist. By and large, the authors find that currency depreciation tends to exercise a stronger influence on stock returns than does currency appreciation.Practical implicationsThe results offer important insights for investors, regulators and policymakers. With the domestic currency depreciation having a negative impact on stock prices, investors should contemplate implementing appropriate currency hedging strategies to abate depreciation risks and, hence, preserve their expected rate of return on the Egyptian pound-denominated investments. In the current post-flotation era, the government could pursue a flexible inflation targeting monetary policy framework, with a view to both lowering the soaring inflation toward an announced target rate and stabilizing economic growth. The Central Bank of Egypt (CBE) could adopt indirect monetary policy instruments to secure tightened liquidity conditions. Besides, the CBE could raise policy rates to incentivize people to keep their money in local currency-denominated instruments, instead of dollarizing their savings, thereby relieving banks of foreign currency demand pressures. Nevertheless, while being beneficial to the country’s real economy on several aspects, such contractionary monetary measures may temporarily impinge on stock market performance. Accordingly, policymakers should consider precautionary measures that reduce the potential for price distortions and unnecessary volatility in the stock market.Originality/valueTo the best of the authors’ knowledge, the current study represents the first attempt to explore the potential impact of exchange rate changes under different regimes on Egypt’s stock market, thus contributing to the relevant research in this area.

Effect of Coronavirus Crisis on the Liquidity and Capital Structure of the Banking Sector in Egypt: A Professional Accounting Perspective

Coronavirus pandemic has its significant and severe effects on the operations of different businesses all over the world and consequently on the banking sector, which is of great importance and represents an important source of credit to individuals and corporations. The objective of this paper is to investigate the impact of coronavirus pandemic on the liquidity, as measured by cash flows from operations and the capital structure, as measured by the leverage level, of the banks listed on the Egyptian Stock Exchange (EGX). Based on a sample of 9 listed banks on EGX during the period 2019-2020, the author found no significant effect of coronavirus pandemic on the liquidity of the banks listed on EGX. However, statistical results showed that coronavirus pandemic has a significant effect on the capital structure of the listed banks. Research results imply that the strategies set by the Central Bank of Egypt (CBE) and followed by the listed banks are highly effective in absorbing the negative impact of coronavirus pandemic on the banking industry. Based on these findings, the author recommends more research to be conducted to investigate the impact of coronavirus pandemic on other aspects related to the banking industry; such as profitability and market value.

Real interest rate, income and bank loans: panel evidence from Egypt

Purpose This paper aims to examine the effectiveness of monetary policy on bank loans in Egypt using generalized method of moments (GMM) model. Also, it investigates the impact of bank level variables, namely, total assets, liquidity, capital and income on bank loans. It develops the equation of loans, which is introduced by Ehrmann et al. (2002) using bank level variables such as income and the interaction between income and interest rate. Design/methodology/approach This paper examines the impact of monetary policy shocks on bank loans in Egypt by applying the GMM technique and panel data from 1996 to 2014. Findings The results reveal that real interest rate has a significant impact on bank loans, which indicates that the bank lending channel is effective in Egypt. Furthermore, the bank level variables, namely, banks’ size, liquidity and income have significant effects on bank loans in Egypt, which sustains the heterogeneous effect of monetary policy on bank loans. Therefore, the Central Bank of Egypt (CBE) can adjust interest rate to influence the bank loans and total demand. Research limitations/implications It does not examine the effect of monetary policy on small and large banks in Egypt. Practical implications The policy implications from this paper indicate that the monetary authority in Egypt should adjust interest rate to stabilize the bank loan supply. By stabilizing the bank loans, the monetary authority is able to stabilize investment, consumption and total demand. Social implications The relevance of bank lending channel indicates that the role of commercial banks is very important in transmitting monetary policy shocks to the real sector. Originality/value It is important for the CBE, banks and people because it shows the effectiveness of bank lending channel and the effect of global financial crisis on the Egyptian economy.

Monetary policy and macroeconomic responses: non-recursive SVAR study of Egypt

Purpose This paper aims to examine the effects of monetary policy and foreign shocks on output, inflation and exchange rate in Egypt. Design/methodology/approach This paper studies the effects of monetary policy and foreign shocks on output, inflation and exchange rate by using non-recursive SVAR model and quarterly data. Findings First, the empirical results reveal that monetary policy shocks, through changes in interest rate or money supply, have a significant effect on output, inflation and exchange rate in Egypt. Second, the world oil prices and foreign output have significant impacts on output, inflation and exchange rate in Egypt, while foreign interest rate has a significant effect on domestic output and inflation. Research limitations/implications The limitation of the study is examining one country only. Practical implications The Central Bank of Egypt (CBE) should adjust interest rate to stabilize inflation, output and exchange rate. By stabilizing inflation, output and exchange rate, the CBE would be able to achieve the ultimate targets of monetary policy, namely, price stability and economic growth. Social implications It is important for the CBE because it shows the significant effect of monetary policy on macroeconomic variables in Egypt. Also, it is important for people because it shows the important role for the CBE. Originality/value It is important for the CBE because it examines the effect of monetary policy and foreign shocks on macroeconomic variables.

Monetary-fiscal policies interactions and optimal rules in Egypt

Purpose This paper aims to estimate a New Keynesian small open economy dynamic stochastic general equilibrium (DSGE) model for Egypt using Bayesian techniques and data for the period FY2004/2005:Q1-FY2015/2016:Q4 to assess monetary and fiscal policy interactions and their impact on economic stabilization. Outcomes of monetary and fiscal authority commitment to policy instruments, interest rate, government spending and taxes, are evaluated using Taylor-type and optimal simple rules. Design/methodology/approach The study extends the stylized micro-founded small open economy New Keynesian DSGE model, proposed by Lubik and Schorfheide (2007), by explicitly introducing fiscal policy behavior into the model (Fragetta and Kirsanova, 2010 and Çebi, 2011). The model is calibrated using quarterly data for Egypt on key macroeconomic variables during FY2004/2005:Q1-FY2015/2016:Q4; and Bayesian methods are used in estimation. Findings The results show that monetary and fiscal policy instruments in Egypt contribute to economic stability through their effects on inflation, output and debt stock. The monetary policy Taylor rule estimates reveal that the Central Bank of Egypt (CBE) attaches significant importance to anti-inflationary policy and (to a lesser extent) to output targeting but responds weakly to nominal exchange rate variations. CBE decisions are significantly influenced by interest rate smoothing. Egyptian fiscal policy has an important role in output and government debt stabilization. Additionally, the fiscal authority chooses pro-cyclical government spending and counter-cyclical tax policies for output stabilization. Again, past values of the fiscal instruments are influential in the evolution of the future fiscal policy-making process. Originality/value A few studies have examined the interaction between monetary and fiscal policy in Egypt within a unified framework. The presented paper integrates the monetary and fiscal policy analysis within a unified dynamic general equilibrium open economy rational expectations framework. Without such a framework, it would not be easy to jointly analyze monetary and fiscal transmission mechanisms for output, inflation and debt. Also, it would be neither possible to contrast the outcome of monetary and fiscal authorities commitment to a simple Taylor instrument rule vis-à-vis optimal policy outcomes nor to assess the behavior of monetary and fiscal agents in macroeconomic stability in context of an active/passive policy decisions framework.

The role of awareness campaigns design in display the banknotes security elements to support the economic security

Awareness campaigns are one of the most important elements for the dissemination and consolidation of information among society members, especially information that touches the economic security that affects both citizens and the state, such as educating citizens and introducing them the Egyptian banknotes security elements, Especially that the Central Bank of Egypt is expected by 2020 to issue the polymer banknotes secured using the latest security elements of banknote security in the world, In this regard, it is not enough to develop the banknote design and use the latest elements of security without defining and educating citizens categories how to identify the elements of visual security by abstract eye and by the sense of touch in order to eliminate the attempts of counterfeiters continue to falsify banknotes and damage the economy of the country. Hence the problem of the research in the absence of awareness campaigns aimed at defining the elements of securing the Egyptian banknotes to different categories of people. The importance of research in spreading the culture of community in the area of banknote security and reduce the spread of banknotes counterfeit and support economic security. The research conducted the descriptive analytical method, which is based on the description and analysis of awareness campaigns aimed at defining elements of securing the Egyptian banknotes in order to reach the desired results. The research aim is to design awareness campaigns aimed at introducing the elements of the Egyptian banknote security by using the denomination100 Egyptian pounds as a sample, in order to reach all categories of Egyptian society and defined the banknote security elements to all. The results of the research to emphasize that the design of awareness campaigns for citizens to introduce banknotes security elements will help them to prevent the spread and circulation of counterfeit currency among citizens without their knowledge. also puts Awareness campaigns in places frequented by citizens from all social levels, such as metro, train, banks, hospitals, schools, universities and government institutions, will help citizens and educate them about the risks of fraud and maintaining the country's economic security. The design of awareness campaigns in a variety of print, audio and video formats and their publication on the Internet, digital displays and media will support the qualitative shift and development of paper currencies into the polymer currencies to be carried out by the Central Bank of Egypt in 2020. Also design applications for mobile phones running on Android and IOS will help both Egyptians and foreigners visiting Egypt to identify the elements of the Egyptian banknotes security and avoid any counterfeit banknotes. The study recommends the re-design of the Central Bank of Egypt website to include an interactive page specialized in identifying banknotes and their security elements, trading methods, laws dealing with them, manufacturing and ways to report counterfeits, designing applications for mobile phones running on Android and IOS and designing awareness campaigns in the media. Such as radio and television as well as printed campaigns displays in public places frequented by a large number of citizens (hospitals, health centers, family care, post offices, consumer complexes, metro stations and trains, youth centers, Healers and banks).