Balance of Payments Performance During FY 2005/06  Egypt’s BOP realized, during FY 2005/06, an overall surplus of US$ 3.3 billion (against an overall surplus of US$ 4.5 billion during FY 2004/05). This resulted in an equivalent rise in the foreign reserve assets with the CBE. The overall BOP surplus was an outcome of the US$ 1.8 billion surplus on the current account and the rise in the net inflows of the capital and financial account to US$ 3.5 billion during FY 2005/06. The current account surplus was ascribed to the services surplus and the increase in unrequited transfers (net) on the one hand, and the higher trade deficit on the other. The trade deficit reached US$ 12.0 billion (against US$ 10.4 billion during FY 2004/05) as a result of the increase in merchandize imports to US$ 30.4 billion (of which imports of investment and intermediate goods represented 53.6% ; a matter that will have a positive impact on investment and growth in the future). Meanwhile, merchandize exports mounted to US$ 18.4 billion as an outcome of a 92.9% increase in oil exports due to the tangible improvement in the exports of the natural and liquefied gas, and the slight decline in non-oil exports by 3.5%. The services surplus reached US$ 8.2 billion, due to a rise in service receipts as a result of a pickup in most of their items. The most important of these items was travel (tourism revenues) which moved up by 12.5% to reach US$ 7.2 billion. Moreover, Suez Canal tolls grew by 7.6% to US$ 3.6 billion owing to a rise in the number of transiting ships and net tonnage, and the increase in transit tolls by 3.0% as of March 2006. In addition, there was a rise in the investment income receipts. Net unrequited transfers rose to US$ 5.6 billion (against US$ 5.4 billion during FY 2004/05) mainly due to an increase in private transfers to US$ 5.0 billion. The rise was mainly seen in the remittances of Egyptians working abroad. The capital and financial account during FY 2005/2006 achieved a net inflow of US$ 3.5 billion against US$ 3.4 billion during FY 2004/05. Foreign direct investment (FDI) in Egypt realized a net inflow of US$ 6.1 billion against US$ 3.9 billion during FY 2004/05. Moreover, portfolio investments in Egypt achieved a net inflow of US$ 2.8 billion against US$ 0.8 billion during the preceding FY.