(MENAFN- Daily News Egypt) The Central bank of Egypt (CBE) revealed that Egyptian expatriates' remittances increased by 32.4% during the first seven months of this year, reaching approximately $15.5bn, compared to around $11.7bn during the same period last year.
In a statement released today, Monday, the CBE noted that remittances in July 2024 rose for the fifth consecutive month, soaring by 86.8%. They reached about $3bn in July 2024, compared to approximately $1.6bn in July 2023, marking a record high for July since the start of tracking remittance flows.
The central bank also reported a 15.9% increase in remittances in July 2024 compared to June 2024, during which remittances totalled around $2.6bn.
Remittances from Egyptians abroad are among the country's most important sources of foreign currency. These remittances saw a significant boost following the decision to float the exchange rate in November 2016, which helped stabilize the currency at that time and encouraged Egyptians abroad to transfer their savings in dollars through banks.
The remittances hit an all-time high in the fiscal year 2021/2022, reaching $31.9bn. However, they declined to $22.1bn in 2022/2023 due to several factors, including the global COVID-19 pandemic, which led to the closure of many businesses worldwide, causing job losses for many Egyptian expatriates. Other contributing factors included issues related to currency exchange rates, the emergence of a parallel dollar market, the Russian-Ukrainian war, supply chain disruptions, global inflation spikes, rising interest rates, and fluctuating oil prices. These challenges slowed GDP growth in high-income countries, leading to a deceleration in remittance flows to many low- and middle-income countries, including Egypt, in 2023.
Additionally, the behaviour of Egyptian expatriates during times of crisis impacted remittance levels. Many tend to save their foreign currency at home, preferring to wait for more clarity before making financial decisions.
Despite global economic challenges, Egypt's ranking among the top remittance-receiving countries improved, rising from sixth to fifth place globally, following India, Mexico, China, and the Philippines.
In response, the Ministry of Immigration and Egyptian Expatriates Affairs has worked in collaboration with various ministries and state institutions to introduce alternative measures to increase foreign currency remittances from Egyptians abroad. This includes launching several key initiatives aimed at addressing their concerns and removing obstacles, thereby encouraging both remittances and investments. One such initiative involves issuing high-yield dollar savings certificates, in cooperation with the CBE and government banks, offering competitive returns of 7% to 9%, the highest dollar yield worldwide. Additionally, the ministry launched the first dollar-based pension plan for Egyptians living abroad.
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