CBE Reports $26.3Bn In Remittances For 11M 2024
Date
1/29/2025 2:05:20 PM
(MENAFN- Daily News Egypt) The Central bank of Egypt (CBE) has announced a remarkable rise in remittances, with Egyptians working abroad sending home $26.3bn during the first 11 months of 2024-up from $17.9bn in the same period of 2023. This marks an impressive growth rate of 47.1%.
In a statement released on Wednesday, the CBE attributed the significant increase in remittances to the economic reforms implemented in March 2024. Notably, November 2024 saw a substantial 65.4% year-over-year increase, with remittances reaching approximately $2.6bn compared to $1.6bn in November 2023.
Between July and November 2024, remittances grew by 77%, reaching around $13.8bn-up from $7.8bn in the same period of 2023. This surge follows the March 6th devaluation of the Egyptian pound, alongside interest rate hikes on the pound and dollar-denominated savings instruments, which have made remittances more attractive for expatriates to send money back home.
Remittances from Egyptians abroad have long been one of Egypt's most vital sources of foreign currency. While remittances peaked at $31.9bn in the 2021/2022 fiscal year, they experienced a decline in 2022/2023, dropping to $22.1bn. The decline was attributed to several factors, including the global COVID-19 pandemic, which led to widespread business closures and job losses among Egyptian expatriates, as well as fluctuating exchange rates and the rise of the parallel dollar market. Additionally, the Russia-Ukraine war and a tendency for Egyptians abroad to save foreign currency during crises contributed to the dip in remittances.
Despite ongoing global economic challenges, Egypt's standing as one of the world's top remittance-receiving nations has improved, with the country now ranking fifth globally-up from sixth place. Egypt now trails only India, Mexico, China, and the Philippines in remittance inflows, further highlighting the importance of these funds to the national economy.
The remarkable recovery of remittances following Egypt's economic reforms demonstrates the growing confidence in the country's financial environment and its appeal as a destination for remittance flows.
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