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Egypt expat remittances rise to $31.9bn

August 24, 2022 at 1:10 pm

A man counts Egyptian pounds at currency exchange shop in downtown Cairo on 3 November 2016 [KHALED DESOUKI/AFP/Getty Images]

Egyptians working around the world transferred $31.9 billion to Egypt in the fiscal year 2021/22, up from $31.5 billion in 2020/21, a 1.6 per cent increase, the Central Bank of Egypt said in a statement yesterday.

The statement indicated that the period from April to June 2022 witnessed an increase in remittances by three per cent, recording $8.3 billion, compared to $8.1 billion in the corresponding period of the previous year.

The fiscal year in Egypt begins on 1 July each year.

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Remittances from Egyptians working abroad constitute the main source of foreign currency in Egypt, followed by tourism, the Suez Canal and exports.

Egypt’s foreign exchange reserves declined significantly following the Russian military operation in Ukraine, which resulted in a rise in energy and grain prices and a subsequent increase in the cost of imports. Foreign exchange reserves declined by $230 million in July to $33.1 billion, down from $33.3 billion at the end of June, according to the Central Bank’s statement.

The Egyptian pound also witnessed its largest decline recently, recording its lowest value against the US dollar since the end of 2016.