65.5% increase in Egyptian remittances during August: CBE
Remittances from Egyptians working abroad surged by 65.5% in August 2024, reaching around $2.6bn, up from approximately $1.6bn in August 2023. According to the Central Bank of Egypt (CBE), remittances saw a significant increase of 76.2% over July and August 2024, totalling around $5.6bn compared to $3.2bn in the same period of 2023.
The bank further noted that remittances in the first eight months of 2024 increased by 36.4%, reaching around $18.1bn compared to $13.3bn during the same period in 2023.
Dollar remittances from Egyptians abroad are one of Egypt’s key sources of foreign currency. The highest levels recorded were in the fiscal year 2021/2022 when remittances reached $31.9bn. However, a decline followed in 2022/2023, with remittances falling to $22.1bn. This reduction was attributed to several factors, including the global spread of COVID-19, which led to business closures worldwide, resulting in job losses for many Egyptians abroad. Other contributing factors were currency exchange rate challenges, the emergence of a parallel dollar market, the Russia-Ukraine conflict, and a tendency among Egyptians abroad to save hard currency at home during times of crisis.
Remittances have resumed flowing into Egyptian banks following the exchange rate liberalization and increased interest rates on both the Egyptian pound and dollar savings instruments since March 6.
Despite global economic challenges, Egypt has improved its ranking among the top remittance-receiving countries, moving from sixth to fifth worldwide, following India, Mexico, China, and the Philippines.
The Ministry of Immigration and Egyptian Expatriates Affairs, in coordination with various ministries and agencies, has been actively working to boost remittances from Egyptians abroad. This effort includes launching initiatives aimed at addressing expatriates’ demands, easing challenges, and encouraging both remittances and investment from abroad.
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