Egyptian remittances up 11.6% in first 9 months of 2020

Egyptian remittances up 11.6% in first 9 months of 2020
A man counts US dollars at a money exchange office in central Cairo, Egypt. (Reuters/File)
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Updated 09 December 2020

Egyptian remittances up 11.6% in first 9 months of 2020

Egyptian remittances up 11.6% in first 9 months of 2020
  • Egypt’s workers abroad sent home $22.1 billion between January and September this year

CAIRO: Egyptians abroad sent $22.1 billion back home in remittances between January and September this year, a year-on-year increase of 11.6 percent, according to data from the Central Bank of Egypt.

Remittances sent home by Egyptians living abroad have risen since the Arab world’s most populous country liberalized its currency exchange rate in November 2016 as part of economic reforms linked to a $12-billion loan from the International Monetary Fund.

The amount sent home by Egypt’s citizens living abroad contributes significantly to the country’s cash reserves, especially at a time when it most needs it.

According to the central bank, between March and May, Egypt’s cash reserves began to decline as investors withdrew liquidity from emerging markets and the tourism sector suffered greatly due to the coronavirus disease (COVID-19).

Over the course of the three months, Egypt’s foreign-exchange reserves declined by about $9.4 billion, but on Sunday the central bank announced that reserves had begun to stabilize in June and now stood at $39.22 billion.


IMF chief sees ‘high degree of uncertainty’ in global outlook

IMF chief sees ‘high degree of uncertainty’ in global outlook
Updated 26 min 44 sec ago

IMF chief sees ‘high degree of uncertainty’ in global outlook

IMF chief sees ‘high degree of uncertainty’ in global outlook
  • IMF had rapidly increased concessional financing to emerging market and developing economies

WASHINGTON: The head of the International Monetary Fund on Monday said the global lender needed more resources to help heavily indebted countries, citing a highly uncertain global economic outlook and a growing divergence between rich and poor countries.
IMF Managing Director Kristalina Georgieva, who has long advocated a new allocation of the IMF’s own currency, Special Drawing Rights (SDRs), said doing so now would give more funds to use address both the health and economic crisis, and accelerate moves to a digital and green economy.
Under outgoing President Donald Trump, the United States, the IMF’s largest shareholder, has blocked such a new SDR allocation, a move akin to a central bank printing money, since it would provide more resources to richer countries since the allocation would be proportionate to their shareholding.
Swedish Finance Minister Magdalena Andersson, the new chair of the IMF’s steering committee speaking at an online news conference with Georgieva, said it was clear the need for liquidity remained great, and she would consult with member countries on options for expanding liquidity.
Andersson, the first European to head the International Monetary and Financial Committee in more than 12 years and the first women, started her three-year term in the role on Monday.
Georgieva said the IMF had rapidly increased concessional financing to emerging market and developing economies, including through donations by member countries of some $20 billion in existing SDRs. That would continue to play an important role, but further steps were needed, she said.
“It will continue to be so important, even more important, for us to be able to expand our capacity to support countries that have fallen behind,” Georgieva said.
She said a new SDR allocation had never been taken off the table by IMF members, she said, adding that some members continued to discuss it as a possible move. A possible sale of gold from the IMF’s reserves would have “some opportunity costs” for the IMF, but would be up to members, she said.
She said she expected the Group of 20 major economies to extend the current moratorium in official debt service payments by the poorest countries, now slated to end in June, but much would depend on the pace of vaccinations in coming months.