(3Minutes Read)
Remittances from Egyptians working abroad increased during May 2024 by 73.8% on an annual basis, reaching about USD 2.7 billion, compared to about USD 1.6 billion during May 2023, according to data from the Central Bank of Egypt (CBE). Monthly, it increased by 26.6% compared to April 2024, when they recorded about USD 2.2 billion.
The CBE attributed this hike in remittance to a new economic reform package that Egypt has been implementing since March 6, 2024. Earlier in March, the CBE raised the overnight deposit rate, the overnight lending rate, and the rate of the main operation by 600 basis points to reach 27.25%, 28.25%, and 27.75%, respectively. Additionally, the discount rate has been raised by 600 basis points to 27.75%.
Egypt has been implementing various measures to address the scarcity of the US dollar. One notable action is the agreement reached with the UAE to develop the Ras El-Hekma zone, situated on the North Coast, which is valued at USD 35 billion.
Furthermore, the International Monetary Fund (IMF) has granted Egypt’s request to increase the value of the existing loan program by USD 5 billion.
In addition, multiple international financial institutions and development partners have pledged financial support to bolster Egypt’s economy. The European Union has committed USD 8 billion over three years, the World Bank Group has allocated USD 6 billion over three years, and the UK has contributed USD 400 million.
Read Also:
https://trendsnafrica.com/overseas-remittances-to-ghana-reached-usd-4-6b-in-2023/
https://trendsnafrica.com/overseas-remittances-from-moroccan-diaspora-reaches-usd-10-65-bn/
To tackle the shortage of US dollars in the local market, Egypt has launched initiatives aimed at attracting the funds held by Egyptians working abroad back into the country.
According to the Central Agency for Public Mobilization and Statistics (CAPMAS), Egypt ranked sixth globally among countries receiving remittances in 2023, with a total inflow of USD 11.09 billion.
